US engagement in Greenland will intensify

Significance

Attention is returning to Greenland’s natural resources -- especially rare-earth elements (REEs) -- and its strategic location, something China and Russia also recognise. Washington in April gave a USD12.1mn aid package to Greenland, supporting economic development through mining, education and tourism.

Impacts

• China will continue investing in Greenland’s REE reserves, straining US-China relations.
• Nuuk will use US investment as leverage for greater Danish political and economic engagement.
• Foreign investment and diplomatic engagement will embolden Greenland as a distinct political entity.
• Climate change will increase Greenland’s viability as tourist destination.