China's Arctic Ambitions Raise Concerns for U.S. Resource Security

Securing access to the region's energy and mineral resources requires political and market stability.

Published on Feb. 26, 2026

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The Arctic region holds significant untapped oil, natural gas, and mineral resources, making it a growing area of strategic interest for the United States and its competitors, particularly China. While the U.S. has pushed to acquire Greenland, a Danish territory with vast mineral deposits, experts caution that physical access to resources does not necessarily translate to market availability. Political stability and investor confidence are key to unlocking the Arctic's economic potential. As China expands its influence in the region, the U.S. must balance saber-rattling against allies with strengthening relationships and market-based solutions to improve resource security.

Why it matters

The Arctic's energy and mineral resources, as well as its potential as an alternative shipping route, make it a critical geopolitical battleground. China's growing presence in the region, including efforts to secure extraction rights in Greenland, raises concerns that it could disrupt U.S. access to these strategic resources. Maintaining stability and investor confidence in the Arctic is crucial for the U.S. to compete with its rivals and ensure resource security.

The details

The Arctic region is estimated to hold 13% of the world's undiscovered oil resources and 30% of its undiscovered natural gas. Greenland, in particular, has exceptional mineral deposits, with 25 of the 34 minerals considered 'critical raw materials' by the European Commission. The region is also becoming more accessible as climate change reduces summer ice coverage. However, extracting these resources is extremely expensive, and political instability can deter investment. China has been actively expanding its influence in the Arctic, including through significant foreign direct investment in Greenland, raising concerns about its ability to disrupt U.S. access to these strategic resources.

  • The Trump administration pushed to acquire the Danish territory of Greenland, which has vast mineral resources.
  • Between 2012 and 2017, Chinese foreign direct investment in Greenland accounted for more than 11% of the territory's GDP and nearly 6% of Iceland's GDP.

The players

United States

The U.S. views the Arctic region as a strategic priority, particularly in terms of securing access to its energy and mineral resources, as well as alternative shipping routes.

China

China has been actively expanding its influence in the Arctic, including through significant foreign direct investment in Greenland, raising concerns about its ability to disrupt U.S. access to these strategic resources.

Greenland

A Danish territory with vast mineral deposits, including 25 of the 34 minerals considered 'critical raw materials' by the European Commission.

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What’s next

The U.S. needs to expand its icebreaker fleet, strengthen relationships with NATO allies in the Arctic region, and better communicate to European allies the importance of addressing China's growing influence in the region.

The takeaway

Securing U.S. access to the Arctic's strategic resources requires a balanced approach that prioritizes market stability and political cooperation with allies, rather than saber-rattling and territorial conflicts. Lessons from past energy crises show that market-based solutions, not military interventions, are the key to addressing resource scarcity.