CTVNews.ca Staff
A Chinese adventurer and business tycoon is stirring controversy in Iceland by proposing to buy a chunk of the North Atlantic country for a luxury eco-resort.
Huang Nubo, who was a Chinese government official prior to making a fortune in real estate, plans to buy a tract of land equivalent to 0.3 per cent of Iceland's territory for $8.8 million.
Huang has been known to venture to remote corners of the Earth, having scaled Mount Everest and trekked Antarctica. During a visit to northeast Iceland he says he fell in love with a barren stretch of land known as Grimsstadir a Fjollum. And he wants to buy 300-square-kilometres of property there to build a $175-million luxury eco-tourism resort.
The government in Reykjavik, still reeling from a 2008 banking collapse, has welcomed the venture. But critics argue that Huang's close ties to China's communist party are cause for concern.
Could Beijing be using the deal to establish a presence closer to the Arctic, where climate change might open trade routes and opportunities for resource exploration? Could the Chinese government be seeking access to a deep water port 50 kilometres from the site, or water from a glacier runoff?
On Friday, Huang defended the project at a news conference at his company's headquarters, where he dismissed the conspiracy talk.
The project would be part of a chain of high-end nature retreats in China, the U.S. and Scandinavia, he said. It would also help preserve the local environment and Icelandic culture, Huang argued, and would use only private investment funds.
"If it involved politics or any other background (than tourism), I wouldn't go there," he said.
Iceland's ambassador to Beijing, Kristin Arnadottir, appeared alongside Huang, saying that the proposal fits with Iceland's twin goals of promoting foreign investment and tourism.
"Perhaps we are going to experience something much more positive as Iceland becomes a tourist destination," she said.
Critics of the deal include Jon Thorisson, an architect who has lobbied to keep foreign investors from snapping up Icelandic resources. Due to Iceland's small size, he said the proposal is equivalent to Washington selling off the state of Missouri.
"Will large-scale ownership allow them to exert political influence?" Thorisson said. "Is it possible that we Icelanders will end up like tenant farmers on our own land?"
Andri Snaer Magnason, a writer and eco-activist, questioned whether the resort was economically feasible due to its remote location. He said it evokes memories of the jetsetting Icelandic bankers whose investment practices destroyed their industry.
"It lacks all sense and logic," he said.
Similar deals have run into opposition in other countries -- including in Canada and the United States -- as Beijing has stepped up investment abroad. Critics have questioned whether the communist government may be involved in the business practices of Chinese firms seeking overseas investments.
The most high-profile case took place in 2005, when state-owned Chinese oil company CNOOC Ltd. abandoned a bid to buy U.S. oil and gas firm Unocal Corp. American politicians had complained that the sale went against Washington's national security interests.
But Icelandic Prime Minister Johanna Sigurdardottir has said her country would welcome Huang's investment.
The deal has yet to be approved, however. The government is reviewing investment rules that limit land ownership by foreigners, according to Interior Minister Ogmundur Jonasson.
Huang said he hopes to secure approval from officials in Beijing and Reykjavik by February, and finish the first phase of development for the resort by 2015.
With files from The Associated Press and a report from CTV's Beijing Bureau Chief Ben O'Hara Byrne
Don
China, Iceland and Canada against the US.Russia can join the new alliance too.
ronnie from montreal
why does he want to buy this ? hmmm like doesnt sound right , as Iwouldnt trust him 1 bit
Zane
China has always believed that they should rule the world. They now are trying to do so financially under the guise of capitalism, by a communist country. Unless the western world is to change there habit of materialism and more, China will succeed in owning a huge block of the world.
billionaire apparatchik
Ahhh tourism ...last refuge of the financially damned (that would be Iceland). I would be weary of any one who comes from The People's Republic of China (or the former Soviet Union for that matter) and has a great deal of money to invest. Hey, how about that derelict Soviet aircraft carrier that was purchased by a Chinese "tourism" company for a floating hotel and casino then reappears several years later as a fully operational aircraft carrier??
Ian in N.B.
I understand the whole, "Oh they're buying up a bunch of land that isn't theirs" argument, but I'm sorry when does 0.3% consitute a "Big" portion of land? Oh no, what are they going to do with the other 99.7% of the land they own?
LP
How does a "communist" country have billionaires? Personal wealth is the least communist idea out there. it's no coincidence that a former communist official was able to take advantage of the real estate market opening up in the country and become a multi billionaire. Pretty disgusting. Communist my butt.
AJC
Nice to see racism is alive and well on the interweb. I find the number of likes on the anti-China remarks and the overall suspicion here more disturbing than the article. If a white guy was doing this we'd all be excited and think it was a great idea... cue the dislikes.
uturn
Tell China to go to H_ll and Canada should lend them the money to protect the western hemosphere from Communist B.S.
slewshark
The americans really don't have to worry about the Chinese invading North America.In twenty years they will just evict everyone because they will own the place.
Gundula Baehre
This is the danger of so-called eco-tourism. I high--end 175 million dollar resort is going to put a huge amount of stress on the ecology, natural beauty of Iceland. And what's next, a similar type of resort in Antarctica or another ecologically delicate area? Not a good idea, and no matter what, tourism, even eco-tourism will stress nature, will have a negative effect (no matter how "green" one tries to make it).
Michael from Toronto
In China, NOTHING is PRIVATE PROPERTY. The simple fact is China's 1-party, non-elected government which has absolute power on all policies. The government can privatize anything at will, without answering to the judiciary or the people. Just look at how Venezuela's Chavez nationalized the media and oil companies... and he does not even have a party doctrine to back him up like Red China has. Iceland is a basket case. They need to realize they must work honestly to pay for the costs of their foolishness instead of jumping into more foolishness. This is how they got themselves in trouble the last time.
Gerald
With Hong Kong leading up to political uncertainty in the late 90's, thousands emigrated to Vancouver. I was living there at the time. Malls were built , a little bungalo would sell for $350,000, high rises and bridges were built, jobs were created and some really great Chinese Food restaurants were opened. A lot of Vancouver residents got really really rich in the process. There were no dark secrets. The residents of Vancouver weren't beaten and hauled away somewhere never to be seen again, they bought boats and BMW's with the money that was brought in.
al
Just give him the whole place, nothing there anyhow
novawar
And so the invasion of North America begins....
J.C.
If I were Iceland I would limit the amount of land designated for foreign investors. Why would he need as much land as the size of a US state to build a tourist resort? Doesn't make sense to me. I too would question his real purpose behind this investment. There are a lot of resorts around the world that do not use that much space!! I also wonder why China being a communist country with so many poor (communism basically where all is supposed to be shared equally) would have billionaires and how many of these rich were formerly in government!!
jerry law
world wide of chinatown?
Judy Thorne
If this is such a wonderful idea, ie. beautiful area for a resort, then Iceland should develop it for its tourism industry.I am sure that China has other motives in securing real estate in Iceland.
KJ in Kingston Ontario
Why shop in Iceland when there's lot's of FOR SALE signs all over North America...?
mikel
Another place where only the super rich can play vacation and pretend they are saving the world for us.
MDK
This will also give them some kinda opinion on the NW passage too I figure... they are trying to wade in on the rush to grab what they can up there now that we have trashed the rest of the world's resources.
manner
America take note! If Iceland is worth that amount, then perhaps you could eliminate your debt comepletely by selling Alaska to China, even throw in Sarah Palin as part of the deal.
James in Calgary
And the name of this park? The People's Armed Naval Fleet and Submarine Base By The Harbour. "Fun for the whole family" (no cameras allowed).
J.Bond
$10 and a pile of broken Chinese-made powertools says there will be a secret lair under the resort. Icelandic hencemen eh? Bet they can't shoot straight either.....
del
In short order the world will see that the Chinese military will be setting up on a big part of that area, therefore controlling northern oceans.
Donald L, Ont.
I'm confused. Why is there such a thing as a Chineese Billionaire ? Communism aint what it used to be.......well maybe it still is for the majority..
Jonathan Hinkle
The US-selling-Missouri analogy is inaccurate. Missouri makes up about 2% of the US's land area. Massachusetts, however, makes up about 0.3% and so would have made a better analogy.
Mike vdB - Chatham, ON
I remember living in BC when the Japanese and Chinese from Hong Kong (while stil a British colony) were buying up everything under the sun simply because they had the funds to do so. There were still the same old arguements from people like I am reading now (a lot that happened to be more xenophobic than anything). BC never became what people were scared of but instead grew from the investment. Take business ideas for just that....business ideas. Leave the rest of the bull out of it.
URU
Not sure why the US is pressuring other countries to focus so much on the deal, perhaps the Americans can't bear the fact that China is already a superpower and they need to do whatever it takes to stop the Chinese fear of nothing!!!!! The more the US tries to stop the development of other countries the more other countries will see throught the US's intents. The US is using PATHETIC political tactics, why not focus more on their own finances and internal problems before trying to cure what was never a problem. Maybe China should block all foreigners from buying land on their own soil and see what these billionaires thing of it?
Christine
I have visited Iceland in June. It's the most beautiful country I have been to so far. I highly recommend vacationing there!
KWG
Ummm....just like how Foreign companies own large tracts of Canada and strip mine or deforest our natural environment. Then sell it back to us for a profit.......sounds familiar........don't do it Iceland!
Anthony
Iceland's ambassador to Beijing, Kristin Arnadottir, appeared alongside Huang, saying that the proposal fits with Iceland's twin goals of promoting foreign investment and tourism....Ambassador obviously lost his senses. There will not be too many Icelanders frequenting this Chinese Resort in their own country, but there is a large probability in a few years hence, there will be more Chinamen in Iceland than there are in Vancouver !
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