A wealthy Chinese businessman has announced his intention to buy 300 square kilometers of land in Iceland for 100 million dollars, with plans to build luxury hotels and an environmentally-friendly holiday resort, as reported by the Beijing News on Tuesday.

Huang Nubo, the chief director of Zhongkun Group, an investment company in China, has already reached an agreement with the land's current owner regarding his proposed purchase of the territory. According to Icelandic law, the agreement must also pass an approval process by the government, due to Huang's foreign nationality and the government's proprietary rights over its territory.

The land that Huang has bidden for is located close to a potential deep water harbor and includes one of the largest glacial streams in the country within its boundaries, according to the Financial Times (FT). However, Huang is committed to renouncing his right over the water resources within this swathe of land.

Zhang Bo, a military expert, told the newspaper that "So far, China doesn't have the ability to expand its strategic foothold to a place as far as Iceland. It would also not conducive to the Chinese people's interests."

Opinions have also clashed within Iceland's government. Its foreign ministry welcomes the effort to protect natural resources and develop ecological tourism, but the interior ministry worries that the acreage is too large, at almost 0.3 percent of the island nation's territory, according to the report.

Huang Nubo, formerly a prolific poet, ranks at 161 on the Forbes list of China's wealthiest, with net assets worth $890 million. Zhongkun Group, founded by Huang in 1995, has grown to a private enterprise with its core businesses in the property and leisure industries.