U) Arctic Prospecting: Measuring China’s Arctic Economic Footprint

In this report, we examine the nature and scope of PRC investors’ FDI in the Arctic contextualized by activity by investors in other states.2 Our analysis of economic activity in the Arctic by PRC-based actors assessed the issue from two perspectives: 1. [...] Effectively tackling the challenge of PRC economic statecraft in the Arctic will require Arctic policy-makers to appreciate the difference between FDI and other economic activity, and hone policies to screen the latter as well as the former. [...] How can the US mitigate negative implications of PRC Arctic FDI?18 1.1 Research statement This research memorandum examines the first question, “What is the nature and scope of current FDI in the Arctic?” Specifically, Section 1260E of the FY 2020 NDAA calls for this study to identify projects in the Arctic directly and indirectly funded by PRC-based entities and compare that FDI with that from ot. [...] The appendixes provide additional information about PRC Arctic economic activity, details on the unique features of PRC SOEs, case studies of prominent PRC-based firms active in the Arctic region, and added details on the economic activities of other non-Arctic states in the region. [...] After a period of rapid growth in foreign investments in Iceland’s service sector early in the 2010s, foreigners withdrew from the sector in the latter half of the decade.