Greenland’s strategic riches: The new Cold War frontier as U.S. and China vie for Arctic dominance

By willowt // 2025-04-03

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Greenland has emerged as a geopolitical flashpoint due to its vast rare earth mineral deposits, Arctic shipping lanes and location between North America and Europe, drawing intense U.S.-China rivalry.
Greenland holds 25 of 34 critical minerals essential for technology and defense. China dominates global rare earth supply (80%), prompting U.S. efforts to secure mining deals, like the Tanbreez acquisition.
Beijing’s "Polar Silk Road" and self-declared "near-Arctic state" status signal its intent to expand influence, while Russia also increases its Arctic military presence.
Despite U.S. overtures, Greenlanders prioritize autonomy, with leaders wary of foreign interference. Prime Minister Egede called early elections amid concerns over external pressure.
The Trump administration focuses on economic investment (mining) and security (NATO’s Pituffik Space Base) to counter China, but risks diplomatic fallout if negotiations are overly aggressive.

Greenland, the world’s largest island, has long been dismissed as a frozen wasteland—until now. With vast deposits of rare earth minerals, emerging Arctic shipping lanes and a strategic location between North America and Europe, Greenland has become the latest flashpoint in the escalating rivalry between the United States and China. The Trump administration’s renewed push for American influence over the autonomous Danish territory is not mere geopolitical posturing; it is a calculated move to secure the resources and routes that will define 21st-century power. As Vice President JD Vance declared during his recent visit to Greenland’s Pituffik Space Base: "We know that Russia and China and other nations are taking an extraordinary interest in Arctic passageways and Arctic naval routes and indeed in the minerals of the Arctic territories. We need to ensure that America is leading in the Arctic, because we know that if America doesn’t, other nations will fill the gap where we fall behind." Success in the region would provide positive economic outcomes and strategic positioning.

Why Greenland matters: Minerals, security and the new Cold War

Greenland’s southern region is a treasure trove of critical minerals—25 of the 34 raw materials deemed essential by the European Commission. These include rare earth elements (REEs) vital for advanced technology, defense systems and green energy solutions. China currently dominates the global REE supply chain, controlling nearly 80% of production—a vulnerability the U.S. can no longer ignore. President Donald Trump’s executive order to boost domestic mineral production underscores the urgency. But with China aggressively courting Greenland’s mining sector, America must act decisively. The recent sale of Tanbreez Mining—a Greenland-based rare earth firm—to U.S.-backed Critical Metals instead of a Chinese buyer is a small victory. As Tony Sage, CEO of Critical Metals, revealed, Chinese firms offered far more, but U.S. pressure secured the deal. "Tanbreez had agreed to a payment of 5 million in cash and 211 in Critical Metals stock, which was significantly lower than the offers made by Chinese companies," Sage told Reuters. This is economic warfare—and Greenland is the battleground.

China’s Arctic ambitions: A threat to U.S. sovereignty

Beijing’s 2018 declaration as a "near-Arctic state" was a brazen power play. China’s proposed "Polar Silk Road" seeks to extend its Belt and Road Initiative into the Arctic, leveraging infrastructure investments to gain strategic footholds. Russia, too, is expanding its Arctic presence. Vladimir Putin recently warned: "The role and importance of the Arctic for Russia and for the entire world are obviously growing. Regrettably, the geopolitical competition and fighting for positions in this region are also escalating." The U.S. cannot afford complacency. As Ryan Kiggins, a political science professor, noted: "Securing Arctic shipping lanes—which are becoming navigable as climate change melts polar ice—forms another part of Trump’s rationale."

Greenland’s resistance: A diplomatic challenge

Despite Washington’s overtures, Greenland and Denmark remain resistant to U.S. annexation. Greenlanders, while open to foreign investment, fiercely guard their autonomy. Prime Minister Múte Bourup Egede called early elections in March 2025 amid fears of external interference. Eldur Ólafsson, CEO of Amaroq Minerals, framed Greenland’s dilemma: "Greenland’s vast mineral potential represents an opportunity for the West to secure a supply of essential critical minerals—needed for batteries, industrial development and AI infrastructure—and reduce dependence on China." But sovereignty remains non-negotiable.

The path forward: Can America secure Greenland’s future?

The Trump administration’s strategy hinges on two fronts:

Economic leverage – Expanding U.S. investment in Greenland’s mining sector while countering Chinese bids.
Security partnerships – Strengthening NATO’s Arctic presence via Greenland’s Pituffik Space Base.

Yet, as Kiggins cautioned: "I remain skeptical the Trump administration has prudently deliberated potential costs associated with its aggressive negotiating strategy. These costs may include loss in reputation, prestige and trustworthiness—all crucial to striking international bargains."

The Arctic century has begun

Greenland is no longer a remote outpost—it is the epicenter of a new Great Game. With China and Russia advancing, America must act with both strength and diplomacy. The alternative? A future where America’s adversaries control the resources and routes that will define global power. As Harvey Kaye of U.S. Critical Materials declared: "We are uniquely positioned to help Make America Critical Mineral Independent Again." The race for Greenland is on—and the stakes have never been higher. Sources include: TheNationalPulse.com Newsweek.com APNews.com