The United States now holds the permanent authority to act in Greenland to secure the island and the United States, with no U.S. adversary allowed a base, military presence, or sensitive investment without express written American approval, President Donald Trump stated on Friday.
The agreement aims to exclude China from the Western hemisphere. Chinese foreign direct investment in Greenland reached hundreds of millions of dollars by 2017, representing about 11% of the territory's gross domestic product. In contrast, Chinese investment in Canada accounted for just 2.4% of that nation's GDP. The Greenland Self-Governance Act of 2009 failed to stop this financial penetration, and China previously sought to expand its physical footprint by bidding on airport construction contracts, a bid Denmark blocked.
Trump labeled Greenland a "highly strategic parcel of land" and a "core national security interest of the United States of America." He claimed that while presidents have recognized the island's importance for over a century, none were able to act on it until now. The U.S. Space Force base at Pituffik, situated 750 miles north of the Arctic Circle, hosts a phased-array radar network that detects ballistic missiles, monitors orbit lanes, and tracks satellites. The deal prevents China from installing infrastructure that could threaten these missions.
The pact follows last winter's diplomatic crisis when Trump proposed purchasing Greenland. Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom deployed troops to a joint exercise with Denmark to demonstrate resolve, prompting Trump to threaten tariffs against them. Treasury Secretary Scott Bessent told NBC News on Jan. 18 that European leaders would eventually understand the need for the U.S. security umbrella. NATO Secretary General Mark Rutte also worked to cool tempers and keep negotiations on track within the alliance.
The move is part of a broader effort to counter Beijing's global economic reach following China's World Trade Organization accession. Secretary of State Marco Rubio has pursued similar tactics in Panama, where he secured a withdrawal from Chinese deals, and has focused on Venezuela.