China's Belt and Road Initiative in Greece
Foundation of the Belt and Road Initiative
Since Chinese President Xi Jinping came to power in 2012, he has dedicated himself to revitalizing China. One such program is the revitalization of the Silk Road under five pillars of peaceful coexistance: policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds. President Xi wishes to pay homage to the legacy of the ancient Silk Road with an ambitious plan titled the Belt and Road Itiative (BRI). He plans to build a framework of international cooperation to revive the ancient trade routes over both land and sea as a safeguard for peace, stability and mutually beneficial economic relationships with participating states. |
The plans for BRI directly draw on the soft power framework established by the famous Chinese explorers Zhang Qian and Zheng He. Like the legacies of Zhang and Zheng, the plans for revitalizing the Silk Road include both land and maritime routes. President Xi’s ambitious program calls for the construction of a complex network of infrastructure including roads, airports, railways, shipyards, power grids, pipelines, industrial parks, ports and tourism.
Since BRI was announced in September 2013 during a speech President Xi gave at a university in Kazakhstan, hundreds of projects have developed between China and countries across Asia, Europe and the Middle East. By the end of 2017, China had invested over $140 billion into projects in more than 35 countries through the construction of maritime and terrestrial infrastructure developments and has promised billions more for upcoming construction deals.
Since BRI was announced in September 2013 during a speech President Xi gave at a university in Kazakhstan, hundreds of projects have developed between China and countries across Asia, Europe and the Middle East. By the end of 2017, China had invested over $140 billion into projects in more than 35 countries through the construction of maritime and terrestrial infrastructure developments and has promised billions more for upcoming construction deals.
COSCO Invests in Greece
One of the earliest and foundational components of BRI's success is the Greek port of Piraeus; the single most important piece of China’s plans for a gateway to Europe. The project has been called "the dragon's head." Years after purchasing an operating licenses out of the port, a state-owned Chinese company called China Ocean Shipping Company (COSCO) first invested in Piraeus after the 2013 International Monetary Fund bailout stipulated Greece had to privatize a large number of government assets. As part of the bailout, Greece was required to sell airports, utilities and other state-owned assets, thus relieving Greece’s government of heavy spending on infrastructure programs. |
Foreign investors are often scared of privatization opportunities in Greece due to shifting standpoints, filibusters and flat out procrastination within the Greek government. Trade unions in Greece feared the privatization of Piraeus would not benefit the impoverished populations that rely on the port for jobs. Dock workers also feared that COSCO will replace Greeks with Chinese workers.
The privatization of Piraeus moved forward despite protests about the general secrecy around the deal and lack of governmental transparency. However, COSCO claimed that these fears appeared to be unfounded as management only appointed eight Chinese personnel and retained the entire Greek staff of over one thousand employees.
After several tense years of vocal protests from Greek citizens, the Greek parliament announced the Chinese purchase of the port would move forward. In 2017 COSCO owned majority shares over the port.
Geographical Location of Piraeus
“For Greece, the maritime route is of particular importance, given that the port of Piraeus is the first European point of entry via the new Suez Canal,” said Greek President Prokopis Pavlopoulos. Egypt expanded the Suez Canal in 2015, which doubled the traffic flow between the Red Sea and the Mediterranean and enabled larger ships to pass through the canal.
“COSCO’s investment at the port of Piraeus is an example of the amicable and mutually beneficial cooperation between Greece and China, and showcases Piraeus as one of the most significant hubs in the geostrategic connection between China, and all of Asia, with Europe,” said President Pavlopoulos.
Development of Piraeus also preserves the inflow of raw materials and other resources from Africa and the Middle East and is depended on the increase stability of Greece as compared to Africa and the Middle East. Stabilizing geopolitical environments is key to the success of OBOR. The extreme geopolitical volatility of the Middle East and Africa has made Greece and other European countries more viable opportunities for investment.
The privatization of Piraeus moved forward despite protests about the general secrecy around the deal and lack of governmental transparency. However, COSCO claimed that these fears appeared to be unfounded as management only appointed eight Chinese personnel and retained the entire Greek staff of over one thousand employees.
After several tense years of vocal protests from Greek citizens, the Greek parliament announced the Chinese purchase of the port would move forward. In 2017 COSCO owned majority shares over the port.
Geographical Location of Piraeus
“For Greece, the maritime route is of particular importance, given that the port of Piraeus is the first European point of entry via the new Suez Canal,” said Greek President Prokopis Pavlopoulos. Egypt expanded the Suez Canal in 2015, which doubled the traffic flow between the Red Sea and the Mediterranean and enabled larger ships to pass through the canal.
“COSCO’s investment at the port of Piraeus is an example of the amicable and mutually beneficial cooperation between Greece and China, and showcases Piraeus as one of the most significant hubs in the geostrategic connection between China, and all of Asia, with Europe,” said President Pavlopoulos.
Development of Piraeus also preserves the inflow of raw materials and other resources from Africa and the Middle East and is depended on the increase stability of Greece as compared to Africa and the Middle East. Stabilizing geopolitical environments is key to the success of OBOR. The extreme geopolitical volatility of the Middle East and Africa has made Greece and other European countries more viable opportunities for investment.
“Hotspots in some regions are causing instability and terrorism is rampant… The pursuit of the Belt and Road Initiative requires a peaceful and stable environment,” said President Xi in a speech to world leaders during his Belt and Road summit.
Greece is viewed as a better investment and Egypt after the Arab Spring and ever-present tensions in the Arab world. The raw materials that are transported from Africa and the Middle East are vital to the revitalized Silk Road. Greece is also a member of the European Union (EU). Currently, over 80 percent of China’s trade with the EU is based on maritime routes; further increasing Piraeus’ geographical significance in the revitalization of the Silk Road. The EU is China's second largest trading partner, after the United States. |
Other Chinese Projects in Greece
COSCO has also shown interest in expanding investments to other large Greek ports and shipyards. Similarly, China has shown a commitment to investing in Greece’s national rail system TRAINOSE. The ultimate goal for China is to build a network of interconnected ports. Success would mean connecting the maritime Silk Road with the land routes in their modern forms. Using the strategic framework of the ancient Silk Road, Chinese infrastructure investments are not singular occurrences.
Other planned projects for Greece include the construction of a railway connecting Piraeus to Western Europe. This project combined with Chinese control over Piraeus has the potential to redefine geopolitical relationships across Europe, particularly within the EU. Furthermore, this particular set of projects will also benefit surrounding Balkan countries by developing interconnected lines of infrastructure and increasing economic earnings. Chinese investments in the economically weaker EU states, Eastern Europe and the non-member Balkan states have continued to grown since OBOR began.
China has also invested billions in upgrading both the Athens airport and another on the island of Crete. Under the Chinese investment plan, the Cretan airport will become the second largest in Greece.
Since China began investing heavily in Greece, tourism from China has increased dramatically. Tourism in Greece has increased in general, likely connected to the rise of terrorist attacks in Turkey and Egypt. One Chinese backed project, Hellenikon, is part of a larger initiative to bring 1.5 million Chinese tourists to Greece over the next five years. Prime Minister Tsipras squashed regulatory conflicts and cleared two large refugee camps that blocked development on the project, highlighting concerns about the lack of transparency frequently criticized in Chinese business ventures.
COSCO has also shown interest in expanding investments to other large Greek ports and shipyards. Similarly, China has shown a commitment to investing in Greece’s national rail system TRAINOSE. The ultimate goal for China is to build a network of interconnected ports. Success would mean connecting the maritime Silk Road with the land routes in their modern forms. Using the strategic framework of the ancient Silk Road, Chinese infrastructure investments are not singular occurrences.
Other planned projects for Greece include the construction of a railway connecting Piraeus to Western Europe. This project combined with Chinese control over Piraeus has the potential to redefine geopolitical relationships across Europe, particularly within the EU. Furthermore, this particular set of projects will also benefit surrounding Balkan countries by developing interconnected lines of infrastructure and increasing economic earnings. Chinese investments in the economically weaker EU states, Eastern Europe and the non-member Balkan states have continued to grown since OBOR began.
China has also invested billions in upgrading both the Athens airport and another on the island of Crete. Under the Chinese investment plan, the Cretan airport will become the second largest in Greece.
Since China began investing heavily in Greece, tourism from China has increased dramatically. Tourism in Greece has increased in general, likely connected to the rise of terrorist attacks in Turkey and Egypt. One Chinese backed project, Hellenikon, is part of a larger initiative to bring 1.5 million Chinese tourists to Greece over the next five years. Prime Minister Tsipras squashed regulatory conflicts and cleared two large refugee camps that blocked development on the project, highlighting concerns about the lack of transparency frequently criticized in Chinese business ventures.
Belt and Road Summit
“[Greece] wholeheartedly supports the Belt and Road Initiative, within the framework of our strategic cooperation with China; and we are ready to work together, resourcefully, towards this direction. This is also underlined by the presence of Greek Prime Minister, Alexis Tsipras, at the Beijing forum. For Greece, BRI demonstrates a strong resolve for even closer relationship of all involved parties,” said President Pavlopoulos.
Ahead of China’s Belt and Road Forum, a meeting between world leaders so discuss BRI, Greece’s President Prokopis Pavlopoulos said, “Greece, as a European Union member-state, is encouraging a greater cooperation between the EU and China. It’s towards this direction that [Greece] is promoting every initiative that brings Europe closer to Asia.”
As part of his participation in the Belt and Road Forum, Prime Minister Tsipras is seeking increased Chinese investments in Greece and his hoping to make economic deals during the two-day summit. Over 1,500 delegates attended the summit from 130 countries and 29 of the attendees were heads of state including Vladimir Putin of Russia, Recep Tayyip Erdoğan of Turkey and the presidents of Uzbekistan, Kazakhstan, Belarus and the Czech Republic, and the prime ministers of Italy, Spain, Serbia, Hungary, Poland, Mongolia and Pakistan. Both the United States and North Korea sent delegations. However, attendance by leaders from the European Union was notably limited.
During the summit, President Xi focused on the coordination of international policies, the construction and investment in infrastructure, the promotion of trade and economic cooperation between China and participating countries.
“[Greece] wholeheartedly supports the Belt and Road Initiative, within the framework of our strategic cooperation with China; and we are ready to work together, resourcefully, towards this direction. This is also underlined by the presence of Greek Prime Minister, Alexis Tsipras, at the Beijing forum. For Greece, BRI demonstrates a strong resolve for even closer relationship of all involved parties,” said President Pavlopoulos.
Ahead of China’s Belt and Road Forum, a meeting between world leaders so discuss BRI, Greece’s President Prokopis Pavlopoulos said, “Greece, as a European Union member-state, is encouraging a greater cooperation between the EU and China. It’s towards this direction that [Greece] is promoting every initiative that brings Europe closer to Asia.”
As part of his participation in the Belt and Road Forum, Prime Minister Tsipras is seeking increased Chinese investments in Greece and his hoping to make economic deals during the two-day summit. Over 1,500 delegates attended the summit from 130 countries and 29 of the attendees were heads of state including Vladimir Putin of Russia, Recep Tayyip Erdoğan of Turkey and the presidents of Uzbekistan, Kazakhstan, Belarus and the Czech Republic, and the prime ministers of Italy, Spain, Serbia, Hungary, Poland, Mongolia and Pakistan. Both the United States and North Korea sent delegations. However, attendance by leaders from the European Union was notably limited.
During the summit, President Xi focused on the coordination of international policies, the construction and investment in infrastructure, the promotion of trade and economic cooperation between China and participating countries.