Double Feature! : A Cold Enterprise For “Kinjervinn”

Chinese businessman Huang Nubo, the chairman of the property-development company Zhongkun has made a bid of a billion krona ($8.8 million) for a sizable plot of land in Iceland. Mr. Huang proclaims a fondness for the country, and the intention of expanding his tourism business, but the deal is thus far unpopular in Iceland and his motives are seriously in question.

For one thing, the location of the land plot is conveniently located near several of Iceland’s “most remarkable natural sites”. For a nation with only two very viable natural resources, one of which is unable to be exported (geothermal energy; the other is fish), this could be more impacting upon Iceland than on a country more heavily endowed.

The land plot would constitute 0.3% of the Island’s land mass, 155 square miles, and a seemingly insignificant number, but of primary concern not only for its location in Iceland, but also the location of Iceland itself. Iceland holds a pivotal geographical position between North America and Europe, an area China thus far has no property in whatsoever. The strategic implications of this are enormous, especially considering the political ties “Kinjervinn” (the Chinaman) has in China, having formerly serviced in the Chinese Communist bureaucracy and reportedly enjoying various political business contacts. Although more extreme and hopefully implausible, there is also talk that China could capitalize on a navigable North-west passage if Arctic ice continues to melt.

Many Icelandic officials, including the Foreign Ministry, have welcomed the offer due to the plan to link up the Vatnajokull and Jokulsargljufur national parks without claiming water rights, and the possibilities of further investments stimulating the bruised and bloodied state of the economy after its grand 2008 catastrophe. Mr. Huang has been said to expect investments of over 20 billion krona in the future.

- Liana


http://www.economist.com/node/21530165

http://www.bbc.co.uk/news/world-europe-14714524