The rise of Asia in a changing Arctic: a view from Iceland

Due to both the environmental impacts and the economic opportunities brought about by climate change, interest in the Arctic is rising in Asia. While there is a growing scholarship analyzing Asian interest in the Arctic, Iceland's reception to this interest has been under-studied. This paper explores Iceland's rising interest in the Arctic and its linked response to growing Chinese overtures toward Iceland and the region. Data were gathered from peer-reviewed literature, policy documents, popular media articles, participant observation at the Arctic Circle conference, and semi-structured interviews from October to December 2013 with a cross-section of Iceland's political, economic, and scientific elite. Results indicate that Iceland is trying to capitalize on the increasing global visibility and economic opportunities in the Arctic while working to ensure regional geopolitical and environmental stability. While Iceland generally welcomes Chinese overtures into Arctic political and scientific spheres, the response to economic overtures is more nuanced. Specifically, Iceland is trying to balance a desire for economic gains, Chinese investment in Icelandic industries, and an associated ability to ‘scale up’ economically with a perceived vulnerability to being dominated by a country which dwarfs Iceland in both size, power, and influence.