A new Comintern for the New Era: The CCP International Department from Bucharest to Reykjavík

[By Jichang Lulu and Martin Hála. Also published on Sinopsis and China Digital Times.]

The CCP’s efforts to cultivate foreign political parties and generate an appreciative consensus around Xi Jinping’s policies have now reached Iceland. During a visit by the CCP International Liaison Department (ILD, 中共中央对外联络部), Icelandic MPs had a chance to learn about “Xi Jinping Thought” and pose for pictures with a copy of Xi Jinping’s magnum opus The Governance of China.

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MPs including Áslaug Arna Sigurbjörnsdóttir (with Xi Jinping’s book), Smári McCarthy and Ari Trausti Guðmundsson meet ILD vice director Wang Yajun. Source: ILD.

Two weeks ago, an ILD delegation headed by Wang Yajun 王亚军, one of its vice directors, visited Iceland, as part of a three-country tour that also visited Nepal and Cyprus. The following account of the meeting appeared on 2 August on the ILD’s official website:

At the invitation of Iceland’s foreign ministry, ILD vice-chair Wang Yajun led a delegation to visit Iceland between 31 July and 2 August, meeting with the chairman of the Independence Party [(Sjálfstæðisflokkur)] and minister of finance and economic affairs, Bjarni] Benediktsson, former president [Ólafur Ragnar] Grímsson, [and] the chair of the parliamentary foreign affairs committee, [Áslaug Arna] Sigurbjörnsdóttir, deepening exchanges with the various main political parties, and promoting and introducing to persons from various sectors of society Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the situation of the Chinese side’s implementation of the spirit of the 19th Congress [of the Communist Party].

Xi Jinping Thought or weather talk

While the ILD was quick to propagandise the success of the trip, no public announcement of it was made in Iceland. News about the visit spread among ‘China watchers’ on social media after a few days, originating with the Party Watch Initiative’s Weekly Report, which regularly covers the activities of the ILD and other Party departments.

News eventually reached the Icelandic press. Only after Icelandic journalists had started to work on coverage of the visit did an announcement emerge on the website of the Icelandic Cabinet, a full week after the ILD’s own account.

Representatives of the Communist Party of China, CPC, visited Iceland a few days ago and requested a meeting with Bjarni Benediktsson, the Minister for Finance and Economic Affairs. During the meeting, the CPC representatives explained the party’s ideas for increased cooperation with other countries.

At the meeting, the Minister of Finance and Economic Affairs reviewed the state of the Icelandic economy, developments since the 2008 economic crisis and a comparison with other OECD countries.

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Iceland’s minister for finance and economic affairs Bjarni Benediktsson with ILD vice director Wang Yajun. Source: Stjórnarráð Íslands.

DV then reported on the visit, with quotes from participating MPs. Their recollection of the “exchanges” with the CCP cadres differed from the ILD’s official account. None of the parliamentarians mentioned Xi Jinping Thought or the spirit of the 19th Congress. Smári McCarthy of the Pirate Party (Píratar) talked of a “diplomatic reception” with “much talk about the weather”.

Áslaug Arna Sigurbjörnsdóttir, secretary of the Independence Party and chair of the Althing’s foreign affairs committee, told DV that she “spoke openly” to the ILD officials about “the importance of human rights in Iceland’s foreign policy”. The answer she recalls, with the ‘out-of-poverty’ trope, will be familiar to our readers. The CCP’s long-time efforts to dilute the concept of human rights follow the age-old ‘look, puppies!’ recipe: economic growth exists, the people benefit, and any human rights abuses are irrelevant. At the UN Human Rights Council, of which Iceland is now a member, the PRC has garnered the support of governments from Eritrea to Venezuela to pass resolutions advocating the concept of “human rights with Chinese characteristics” Áslaug was likely told about. If anything, Áslaug’s satisfaction that she raised human rights with the ILD visitors only serves to validate the CCP’s claim to hold a ‘dialogue’ where the voice of rights abusers drowns that of the victims.

Unusually for someone concerned with human rights, Áslaug Arna chose to pose for a picture with writings by the head of a human rights-abusing regime. Under Xi Jinping’s apartheid-like security crackdown in Xinjiang, possibly over a million Uyghurs are interned in ‘reeducation’ camps.

Áslaug did not reply to a request for comment.

The finance ministry told Kvennablaðið that human rights were not discussed in Bjarni’s meeting with the ILD. The conversation was about Xi Jinping’s Belt and Road Initiative, among other topics.

Roads of influence

On the same day that news about the ILD meeting reached the Icelandic public, Björn Bjarnason, a journalist and Independence Party politician who was a minister under six cabinets, published an op-ed on China in Morgunblaðið. Titled “Chinese pressure, near and far”, the article calls on Iceland to maintain its indepndence in the face of pressures it can expect once it assumes the Arctic Council chairmanship next year.

Björn’s piece notes China’s interest in becoming a ‘polar great power’ (极地强国), officially proclaimed at Xi Jinping’s 2014 speech in Hobart. He discusses the case of Greenland, where certain aspects of the PRC’s interests, such as CCCC’s possible involvement in airport development and General Nice (俊安集团)’s attempt to buy a derelict naval base, have led to Danish and American concerns. In Iceland, he points to the long-delayed Kárhóll Chinese-Icelandic Aurora Observatory project, predicting its eventual opening will attract international attention as a sign of China’s assertiveness in the Arctic. Kárhóll will give China “an important foothold” in Iceland.

Björn places the PRC’s Arctic interests within the context of a push for global influence, and mentions the newly introduced anti-interference legislation in Australia.

The CCP’s influence activities in Australia are not, in fact, disjoint from the ILD’s Reykjavík lesson in Xi Jinping Thought. A central role in political influence operations is being played by the United Front (UF) system. A Leninist creation originally imposed on the CCP in the early 1920s, this set of cooptation tactics eventually developed into a major institutionalised area of the PRC political system. Under Xi Jinping, it has gone global. United Front activities are being studied in an increasing number of locations. To mention just three: Hamilton and Joske’s 2017 parliamentary submission provides an overview of United Front groups in Australia; Anne-Marie Brady’s Magic Weapons proposes an influence ‘template’ illustrated in the New Zealand case; Sinopsis and Jichang Lulu’s ongoing collaboration on the CCP’s influence activities in Central-Eastern Europe has described a piece of the Czech United Front puzzle.

The United Front is not, however, the only avenue for Xi’s extension of the CCP’s domestic and diasporic control tactics to the global domain. The Propaganda system seeks to obtain global ‘discourse power’ through tactics that range from attempted extraterritorial censorship to overt and covert propaganda outlets. (An Icelandic version of the latter once attracted some attention.)

From Stalin to Xi

The ILD is another tool of foreign influence. Like other core areas of the political system, the ILD traces its origins to the Soviet management of the world Communist movement. One or more departments governing relations with fellow Communist parties (in power or not) are a feature of Leninist systems. The ILD is similar in name to a secretive Comintern intelligence agency (Отдел международных связей). Post-Comintern, its Soviet analogue was Stalin’s International Department (Международный отдел). The predecessors of the Chinese ILD were Party sections that conducted relations with the Comintern, and later an office whose functions included “researching the revolutionary potential” of Eastern countries and the diaspora. The Department was formally established in 1951. The Sino-Soviet split made it focus on aggressively countering the USSR, supporting splinter groups against orthodox pro-Soviet parties. After the Cultural Revolution, it turned to restoring relations with an expanding circle of Communist and, since the mid-1980s, non-Communist parties. As the DV piece remembers, Geng Biao 耿飚, once an envoy to Scandinavia, visited Iceland in 1979 as vice premier, months after leaving his post as head of the ILD.)

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Vísir, 8 June 1979, one day before the end of Geng Biao’s visit. Source: Tímarit.

True to its nearly centenary history, the modern ILD still maintains especially close relations with Communist parties, in particular those in power. The current ILD chief, Song Tao, is often involved in high-level contacts with North Korea. While contacts with mainstream politicians are increasingly frequent, the ILD continues to nurture relations with even insignificant foreign Communist parties, such as the Communist Party of Australia (CPA), whose vice president was invited to Karl Marx’s 200th birthday party in Shenzhen, organised by the ILD.

Contrary to the impression some Icelandic MPs seem to have received, the ILD’s functions go beyond weather talk. Shambaugh’s classic study of the ILD lists among its tasks “collecting current intelligence“ on the politics and societies of foreign countries. Brady lists the ILD among the main Party-state organisations recruiting intelligence agents abroad. Gitter and Bowie note the role of the ILD and its front groups in efforts to “constrain” Taiwan’s diplomacy. A candid view of the ILD’s intelligence role was provided in the Czech intelligence service BIS’s 2015 annual report:

In 2015, the dominant Chinese intelligence force in the Czech Republic was military intelligence, whose activities supplemented the efforts of a specific Chinese intelligence organisation, the International Liaison Department of the Chinese Communist Party. This is an agency under the Central Committee of the CCP, whose remit includes, besides foreign relations, intelligence activities.

This assessment has not deterred many Czech politicians from making the ILD their main point of contact during visits to the PRC.

The rise of the New Comintern

Xi’s global expansion of the CCP’s toolkit is accelerating the ILD’s embrace of foreign ‘bourgeois’ parties. However, not everyone wants to play along; in the West, each ‘friendly’ contact achieved with the political mainstream, like the Reykjavík meeting, is still significant. In Western Europe, post-Communist and other leftist parties are still the ILD’s best friends. Last July, ILD director Song Tao and vice director Qian Hongshan 钱洪山 received a delegation from the Party of the European Left, led by Gregor Gysi of Die Linke who heaped praise on the CCP as a model for European left-wing parties to learn from.

In Central and Eastern Europe (CEE), managed by the same ILD bureau as the post-Soviet space, old Communist ties still survive to some extent and provide a basis for the rightward growth of ‘friendly contacts’. The ILD’s favourite interlocutor in the Czech Republic is the Communist Party of Bohemia and Moravia (KSČM, Komunistická strana Čech a Moravy). Last year, the Party’s current Chairman, Vojtěch Filip, listed as an agent under the cover name “Falmer” in Communist-era Secret Police (StB) files, even posed for a picture with ILD head Song Tao 宋涛 for a promotional calendar distributed by the PRC embassy in Prague that highlighted major achievements in the newfound Sino-Czech Friendship.

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Czech Communist leader Vojtěch Filip (“Falmer”) with ILD head Song Tao in 2016. Source: PRC Embassy in Prague

Like in Iceland, the ILD’s visits to the Czech Republic are sometimes only reluctantly publicised. In November 2016, ILD sent their “assistant minister” (部长助理) Li Jun 李军 to the annual China Investment Forum in Prague, after PM Li Keqiang abruptly cancelled his visit over the growth of local anti-CCP sentiment that followed a series of embarrassing incidents. His sudden appearance was not publicly announced, and even the event organisers were at loss as to his status, apparently not figuring out in the protocol that he was now the most senior Chinese visitor, far above the Chinese ambassador.

Similarly, when Jan Hamáček of the Social Democratic Party (ČSSD), who as Speaker of the Chamber of Deputies is the fourth highest constitutional figure, attended the ILD-organised “Meeting of Political Parties from China and CEE” (中国—中东欧政党对话会) in Bucharest the following year, there was no public record of him even leaving the country. Only after Sinopsis broke the story did sketchy details emerge.

The Bucharest gathering was also interesting in other respects. It was already the second such meeting bringing together representatives from various CEE political parties and ILD cadres. The first one took place in Budapest, Hungary, a year earlier. The Bucharest meeting was attended, on the Chinese side, by Liu Yunshan 刘云山, at that point the 5th-ranking CCP Politburo Standing Committee member in charge of ideology. (He has since been sidelined.) On the CEE side, there was a mixture of parties ranging from the usual (post-)Communist suspects to more opportunistic friends, such as the Polish People’s Party (PSL, Polskie Stronnictwo Ludowe).

All hail humankind‘s shared New Era

Neither “16+1” meeting of political parties was much publicised. They were, in fact, rehearsals for the big-time event, the “World Political Parties Dialogue” held by the ILD in Beijing in December 2017 under a somewhat clumsy title: Dialogue with World Political Parties High-Level Meeting (中国共产党与世界政党高层对话会). This was, in essence, an ILD coming-out party, showing its power to convene representatives of, supposedly, 300 political parties from 120 countries (a full list was never made public). A previously secretive organization came out into the limelight.

The purpose of the meeting was to reach nothing less than a consensus on the future of humankind. That task apparently went smoothly, with a healthy dose of lecturing on the spirit the 19th Congress. Participants got copies of Xi Jinping’s book. The new consensus for the future of mankind was then enshrined in the “Beijing Initiative (北京倡议)”. It “applauds” Xi‘s “full and rigorous governance” of the Party, improving its “ability to govern and lead” and generate “historic achievements” and other desirable effects. Attendees called for “win-win cooperation” before expressing their “heartfelt appreciation” for the ILD.

Two Antipodean visitors to the Dialogue may provide a taste of humankind’s brave new Shared Future. From New Zealand Labour Party president Nigel Haworth, noted for his praise of Xi Jinping’s “wise leadership”, spoke highly of Xi’s “very brave step” as he tries to “lead the world”. Former Australian Labor politician Bob Carr, who now heads a CCP-‘optimistic’ institution set up with UF-linked donations, was also there.

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Bob Carr with then ILD assistant director Wang Yajun on the sidelines of the CPC “dialogue”, 2 Dec 2017. Source: ILD.

The “summit” illustrated the ILD’s innovative concept of “friendly contacts” without ideological constraints. Unlike its Soviet and Maoist predecessors, the facelifted ILD will not just make friends with Communist and revolutionary parties. In the “New Era”, it will work with whoever implicitly recognises the CCP’s role in a “Community of Shared Future for Humankind”, without necessarily understanding what that actually means. Cooptation tactics become truly universal, with the ILD as a central hinge.

Beyond intelligence gathering and ‘weather talk’, the ILD plays a role in the CCP’s efforts to shape global discourse and build an international consensus endorsing its authoritarian political system. Foreign political parties, from Bucharest to Reykjavík, aren’t its only targets. As the next piece in this series will show, the ILD’s purview within the Xiist discourse-management enterprise extends well beyond professional politics. The propaganda goods Iceland’s MPs delivered to the ILD fall, however, within a newly-normal genre: what Gitter calls “push[ing] China’s vision of the future” with politicians both in power and opposition, building up “reserves of foreign influencers” able to ensure long-term CCP-friendly policies.

All the world’s a stage

After news of the ILD visit became known, Björn Bjarnason wrote a post on his blog, intended as a “supplement” to his Morgunblaðið article on Chinese “pressure”. Comparing the ILD’s official account of the meeting to the explanations by Icelandic participants, Björn notes that the latter might not have been aware that they were “actually taking part in a scene staged on behalf of the Communist Party”. What they saw as a “courtesy visit where they talked about the weather” was presented in China as “promoting Xi Jinping Thought to Iceland’s political parties”.

Plays so staged that foreign and local audiences may perceive them differently are the Party’s trademark. For years, the CCP has sustained such differential messaging in the Arctic, exploiting a general lack of familiarity with China and its political system. If Iceland and other countries in the region intend to preserve their interests in asymmetric relations with China, their political, business and scientific élites may wish to understand their counterparts better. As long as only the CCP knows what’s going on, ‘win-win cooperation’ will mean it wins twice.

[Thanks to Geoff Wade and Anne-Marie Brady]

 

China’s CNOOC now only player in Iceland oil

Ithaca Energy and minor partners Petoro and Kolvetni have handed back their oil and gas exploration permit for a sector of the Icelandic Jan Mayen area after seismic exploration yielded disappointing results. Another license holder, Faroe Petroleum, had already given up already in late ’14. That leaves only one active license, whose operator and majority owner is China’s state-owned CNOOC (中海油), in partnership with local company Eykon and Norway’s Petoro.

CNOOC have been exploring in the area. Their local partner Eykon have talked of plans to continue exploring and shown optimism about the results so far. Eykon have a record of optimism on the probability of finding oil off Iceland, and have at different times aired estimates in the high gazillions. Judging by the consistent lack of interest in Iceland from oil majors, even when oil prices were high, no one in the industry shares that optimism. Except CNOOC of course.

For an older but deeper look into CNOOC and Icelandic oil, there’s always what I wrote back when they bought the license.

the 60% saga: update on Shenghe in Greenland

Two separate sources say Greenland Minerals and Energy, the Australian company that has agreed to sell a stake in a Greenland uranium and rare earth project to Shenghe 盛和 Resources, now denies the agreement includes an option for Shenghe to increase its interest to a controlling one once the project enters the development stage.

An option to acquire a controlling stake (up to 60%) in the Kvanefjeld (Kuannersuit in Greenlandic) project is discussed in clear terms in a Shenghe Shanghai Stock Exchange disclosure, as I was seemingly the first English-language source to report. The language suggests GME is not bound to sell Shenghe such a large share, should they ask for it.

The purchase option should be good news for GME, so it’s hard to see why they would deny it.

It’s been known for ever that some sort of more or less Chinese state-connected involvement would eventually begin in Kvanefjeld. GME had long had a non-binding agreement with a unit of China Nonferrous (中色); as explained in some detail in my post from last week, Shenghe’s main shareholders are also mostly state organs.

This information has now reached the mainstream media. Various experts quoted by Politiken draw (geo)political implications of the deal. Rear Admiral (kontreadmiral) Nils Wang, an Arctic expert with the Danish Defence College, expects the deal to attract attention in the US: “It’s very easy to interpret this not just as the classic Chinese-style long-term thinking, but also as two [the other one being General Nice (俊安集团) purchase of Isua] of China’s slowly creating for themselves in Greenland the same kind of soft-power influence they already have in Iceland”. In Greenland, Aaja Chemnitz Larsen of the opposition party Inuit Ataqatigiit (IA), talks of “a need to know how big an influence China can get over the project”, on which she intends to query the Greenlandic and Danish governments. So that’s already a Greenlandic politician and a Danish kontreadmiral for whom the 60% number and Shenghe’s state connections could be interesting data points.

more on Iceland’s representative at China Internet conference

Stundin reports on Iceland’s participation in the Wuzhen 乌镇 Internet conference last December. As I mentioned back then, Ragnar Baldursson, minister-counsellor at the country’s embassy in Beijing, had the honour of being the only Western representative quoted by Chinese state media as “highly praising” Xi Jinping’s opening speech.

Said media were understandably short of Western representatives to interview. Although several other countries sent embassy staff to the summit, Western governments seem to have tried to avoid endorsing an event meant to advance the Chinese state’s Internet control policies. Writing for the Chinese edition of the Financial Times, Cao Xin 曹辛 refers to a Dec 11 meeting at an undisclosed Beijing embassy, where EU, French, German and Japanese diplomats discussed the upcoming Wuzhen meeting and agreed not to take part in it. Regardless of whether the alleged meeting actually took place, the fact is that no Western leaders attended the event.

An Icelandic foreign ministry spokesperson told Stundin that the Chinese government had actually invited Iceland’s president to the summit, but that they decided to just send an embassy counsellor instead. That’s a bit more junior than a president, but the Chinese authorities might still appreciate that the Icelandic representative agreed to provide a soundbite to the People’s Daily. Although what he actually said was pretty inocuous, it was only to be expected that it would be spun as an endorsement of Xi’s ‘cyber sovereignty’ speech. Ragnar, the Icelandic minister-counsellor, is an old China hand and surely someone familiar with the habits of Chinese state media.

The foreign ministry statement adds that Ragnar was only there on the first day of the summit, and that “there was no discussion on censorship”.

Tempus fugit: Jahresrückblick 2015

Here’s a quick overview of what I’ve been up to in the last twelve months.

Greenland

Largely unnoticed by English and Danish-language media, Greenlandic officials visited China during 2015 to discuss not just mining, but also infrastructure projects. Greenland’s coalition agreed soon afterwards on plans to renew existing airports and build new ones, as well as a container port in Nuuk and new hydro-power plants.

Meanwhile, two mining projects which China Nonferrous (中色) has signed (no-strings-attached) agreements to develop and buy into are moving towards getting production permits: GME’s rare earth and uranium Kvanefjeld deposit and Ironbark’s Zn+Pb project at Citronen fjord. If they do go ahead and Nonfezza does get involved, China’s SOE would become (by far) the largest actor in Greenland mining, but it’s too early to toast to that yet (think ore prices, domestic opposition in the case of the uranium project).

For background on Chinese interest in Greenland’s ores, there’s my post from March for the CPI blog. A new post there gave an update as of December, including the remark that the Citronen fjord project could make China Nonferrous (and of course Ironbark) not just the world’s northernmost miner, but their (largely foreign, quite likely Chinese) staff the inhabitants of the northernmost human settlement on dry land at 83°N.

2015 started with news of General Nice (俊安集团) acquiring production rights for the once promising Isua iron ore project. I wrote a long read on that company’s rather peculiar history, including plenty of data you won’t find elsewhere (at least in a Western language). Later updates on General Nice are also worth a look if you follow what is still Greenland’s only Chinese production permit holder.

Russia

Russia’s recent ‘pivot’ perhaps could be more adequately described as ‘away from the West’ than ‘to Asia’; admittedly increased cooperation with China in some domains has been overspun, especially by Russian and Chinese state media, to make up for the fact that trade between the two countries, and crucially between Russia and Heilongjiang, has actually gone down rather drastically. But the fact that Russia, and especially the Far East, needs Chinese investment more than ever before, means potential Chinese investors are being offered better conditions by the Russians (and sometimes, indeed, accepting them).

The Sakha Republic (Yakutia), specifically, has been quite active in trying to attract Chinese investment, for projects such as, first of all, the bridge over the Lena in Yakutsk, but also others like the Tirekhtyakh Тирехтях lead mine at 69°N, to mention one nobody else seems to have reported in English. For more, go check my posts on Yakutia.

Meanwhile in Vladivostok, or actually near it, Russia’s largest casino had its grand opening. As it was to be expected, most customers were from Mainland China even before they started advertising there at all.

Iceland

Other than their projects in Greenland, China Nonferrous also have plans to build an aluminium smelter in Iceland. Their agreement is all non-binding and the plans didn’t look that serious at first, but (again unbeknownst to Western-language media) meetings in China in the last few months suggests they are planning to go ahead with the thing.

In July, car maker Geely 吉利 (Volvo’s parent) agreed to buy a stake in Carbon Recycling International, a methanol fuel producer.

Construction of the joint Chinese Icelandic aurora observatory is, to put it mildly, delayed, but it has finally started and should be working next autumn.

CNOOC (中海油) and local partner Eykon Energy have started exploring for oil in the Icelandic sector of the Jan Mayen area (Drekasvæði).

Ragnar Baldursson, Iceland’s representative at the Wuzhen internet conference last month, had the honour to become the only Western official to be quoted by Chinese media at the event. His comments (actually quite noncommittal) were spun as “high praise” for Xi Jinping’s ‘cyber sovereignty’, freedom-and-order speech.

Norway

The Hålogaland bridge in northern Norway is already being built. The contractor for the steelwork is SRBG (四川路桥), a Sichuan SOE that won that tender in rather peculiar ways. Peculiar enough, in fact, that two people ended up in jail in Germany as a result. My modest investigation on the case is still the only English source of information on what’s the first Chinese transport infrastructure project in the Arctic.

Huang Nubo 黄奴般, poet, mountaineer, tycoon, has given up on buying land in Iceland for now. Plans to buy a plot in Norway are stalled as well, allegedly for political reasons.

Chinese media

Spurred by an article on Icelandic media (viz. Stundin) on China Radio International’s outlet targeting that country, I did some research on the state broadcaster’s ambitious network of ‘borrowed boats’, radio stations and news sites in several languages that help disseminate the views of the Chinese state while staying discreet about their status as part of the state media system. An July article of mine for the CPI blog focused on GBTimes, the arm of that network covering includes Northern Europe.

A Reuters report on CRI’s network came out in November. It had more of a US focus, but it did discuss GBTimes as well. I wrote an update a few days after that, including, as is my wont, some previously unpublished information e.g. on CRI’s affiliate in Mongolia.

A couple of weeks ago, CRI got a new partner, this time in Siberia. That partner also has an interesting background, in particular as a defence contractor.

Languages

All this reporting wouldn’t be possible without (often rather unrewarding) work on original-language sources, in English and Chinese of course, but also in Russian, Korean, Danish, Icelandic, Norwegian, Mongolian and a few others. Those specifically interested in the linguistic angle might like my recent guest post on the names of the Lena river on Language Log; more than my post, I recommend the comments, where you’ll find remarks by experts in Tungusic and Yukaghir.

state media: Iceland representative “highly praises” Xi Jinping’s speech at Internet conference

Iceland sent a representative to the world Internet conference in Wuzhen 乌镇 near Shanghai a few days ago, an event meant to advance the Chinese government’s views on ‘internet sovereignty‘. Xi Jinping’s opening speech, which included such phrases as “freedom is what order is meant for”, received what the People’s Daily calls “high praise” from foreign attendees including an Icelandic embassy official. Iceland was not the only country to send embassy staff to the event, but theirs is the only Western official I’ve seen quoted in state media reports on it.

The comments came from Ragnar Baldursson, minister-counsellor at the Icelandic embassy in Beijing. Ragnar is an old China hand who studied in China in the 1970s and has been working at the embassy for two decades.

Although spun by state media into something of an endorsement, Ragnar’s actual comments don’t specifically praise Chinese internet policy but simply highlight the increasing importance of the Chinese internet.

update on mining in Greenland

Chinese interest in mining in Greenland hasn’t received a lot of media attention this year, after General Nice (俊安) bought the Isua iron mine, which probably no one would think of developing at the moment (‘cucurbitae caput non habemus‘). That doesn’t mean Greenlandic officials have stopped promoting the island’s ores to Chinese potential investors (there have been meetings in October), or that Chinese interest no longer exists; quite the contrary. As two projects China Nonferrous is expected to help finance and build approach the production stage, Chinese investment in Greenland could become a reality pretty soon.

My latest piece for the China Policy Institute blog discusses these developments.

Chinese-Icelandic aurora observatory should start observing auroras next fall

The Chinese-Icelandic aurora observatory (CIAO), a joint Chinese-Icelandic project located at the Kárhóll farm in Reykjadalur, near Akureyri, is reportedly already under construction after local company SS Byggir won the contract for the main building. That, together with a recent visit to the area by the Chinese ambassador, augurs well for the project, that was already supposed to be ready more than a year ago.

Observation activities should begin in autumn 2016.

More on the observatory and the people and organisations behind it in my previous posts on the subject.

update on China Nonferrous’ Iceland Al smelter project

China’s ambassador to Iceland Zhang Weidong 张卫东 was at China Nonferrous (中色) headquarters in Beijing last week, where he discussed the company’s aluminium smelter project in Iceland with chairman Zhang Keli 张克利 and Wang Hongqian 王宏前, second in charge at Nonferrous’ listed arm NFC. The ambassador highlighted the importance of the project, whose success could set the ground for more Chinese companies to take part in similar endeavours in the future. Chairman Zhang talked of China Nonferrous’ responsibility as a central SOE whose projects abroad, besides their economic significance, are important for the country’s image and foreign relations.

China Nonferrous’ formal commitment to the project so far has the form of what I understand is a non-binding agreement between NFC (中色股份) and local company Klappir Development, signed last July. The Chinese embassy has been involved all along, declaring their support for the project as early as 2013. The Chinese ambassador was present at the signature of the agreement in July, and a few days later toured the site of the projected plant and met with municipal government representatives.

In September, an Icelandic delegation paid NFC a visit in China. They were taken on a tour that included Jinjiang 锦江 Group’s aluminium smelter in Holingol (Chinese 霍林郭勒 Huolinguole, Mongolian Qoolin gool* Хоолингол) in Inner Mongolia, and two Shenyang-based companies controlled by China Nonferrous: NFC Metallurgical Machinery (中色沈阳冶金机械有限公司) and Northeastern University Engineering and Research Institute (NEUI, 东北大学设计研究院). The Icelanders are reported to have praised Chinese aluminium smelting technology and its high environmental standards.

Meanwhile in Iceland, Klappir are expecting to announce the start of the project next spring. NFC’ Wang talks of the Chinese and Icelandic sides both working for construction to start soon.

China Nonferrous are also active in Greenland. With the important proviso that their agreements there are also non-binding, they look poised to become the world’s northernmost miner at the Citronen fjord Zn+Pb project, in partnership with Ironbark, as well as GME’s partner at the Kvanefjeld U+REE mine. Both projects are advancing towards the production stage.

(Hat tip to Hjálmar Friðriksson.)

*This blog will implement Mongolian script toponyms as soon as I figure out the font and display issues. So far I’m going with the usual transcription. Here’s the name in Balk-Janhunen Romanisation, which I think deserves more publicity as a true transliteration system: Quuliv qhuul.

China’s CNOOC starts exploring for Icelandic oil

Surface exploration began last month in the Dreki area off Iceland, in an area licensed to China’s state owned oil company CNOOC (中海油) together with two minority partners, Norway’s Petoro and local company Eykon Energy. Measurements were conducted on the Oceanic Challenger, that operated from Reyðarfjörður with a crew of 60, and a support vessel. (News I reported in June indicated the operation would be exempt from port fees.) This first stage of exploration was expected to last for around three weeks (at any rate the ship is already in Dunkirk).

Eykon chairman Heiðar Már Guðjónsson says the plan is to conduct exploration drilling in three phases, in 2020, 2022 and 2023. The area is quite expensive to explore, and estimates about possible hydrocarbon reserves tend to be rather speculative due to the presence of a thick layer of basaltic lava that makes ascertaining the presence of any oil at all rather tricky without boring actual holes through it. Heyðar Már and others from Eykon have attracted a lot of attention in the past with estimates in the high gazillions, but hardly anyone else is half that upbeat. No oil majors showed interest in Dreki licenses when they were for grabs, and the holders of one of the three awarded licenses, Faroe Petroleum, actually gave up on it last year. CNOOC, on the other hand, are enthusiastic enough to invest in exploration, while keeping remarkably quiet about it (no information on Icelandic oil has shown up on Chinese media).