After Brexit, Greece and China need each other?

(Baonghean) - Greek Prime Minister Alexis Tsipras is visiting China from July 2 to 6. The visit takes place on the occasion of the 10th anniversary of the establishment of the comprehensive strategic partnership between the two countries, and is also a strategic step for the two countries "who are in great need of each other".

Greek Prime Minister Alexis Tsipras is welcomed at a Chinese airport. Photo: Greeknewsonline.

Greece wants Chinese money

Right before the visit, Greek Prime Minister Alexis Tsipras, in response to the press, emphasized that this visit to China aims to strengthen and enhance the relationship between the two countries. It is expected that the two sides will issue a joint statement on the visit as well as organize the 2nd Maritime Cooperation Forum. Information also said that the two sides will sign a series of cooperation and investment agreements on finance, transportation, science - technology, culture - tourism, etc.

It has been a full 10 years since the comprehensive strategic partnership, but it can be said that now is the time when China and Greece need each other more than ever.

As for Greece, it is easy to see that the purpose of this country's approach to China is to have an abundant source of financial support, which can partly help with Athens' current debt crisis.

Although recently, 19 Finance Ministers of the countries using the euro currency decided to disburse 10.3 billion euros in the new bailout package and start restructuring debt for Greece as requested by the International Monetary Fund (IMF), the conflict between this country and its creditors has not yet ended.

In order to receive further bailouts and disbursements, Greece will have to tighten, reform and change further according to the strict standards of international creditors. Therefore, seeking a partner outside the EU to both find investment and support sources and strengthen cooperation, creating more economic initiative are the steps that the Greek government is taking.

Particularly with China, Greek Prime Minister Tsipras said that economic and trade cooperation between the two countries is at a good and very stable level. Through this visit, the Greek government hopes to further promote the flow of its goods into the large Chinese market, especially in the fields of agriculture and food.

Along with that is attracting more Chinese investment in Greece's transportation and infrastructure projects, which are facing many difficulties. Cultural and educational exchanges, new technology transfer and tourism growth are also the goals that both sides aim for.

Another issue that must be mentioned is that the Greek Prime Minister's visit to China took place right after the historic referendum in the UK - with the result that the UK will leave the EU.

After this event, experts said that the Greek debt crisis may return sooner than expected. Along with that is the possibility of Greece leaving the EU.

It can be said that if the UK, Denmark, and Sweden have waves of wanting to leave Europe to assert their national independence, Greece is completely different. The government of this country is worried that the EU will push Greece out of the union to reduce a burden as well as maintain the connection between the remaining members. Therefore, turning to China is a way for this country to prepare for the worst case scenario.

Greek Prime Minister Alexis Tsipras visits the Great Wall of China on July 3. Photo: Ekathimerini.com.

Aim to hold the gateway to Europe

However, for China, the worst case scenario is that Greece is turned away by the EU, which is certainly not what the Beijing government wants. Greece is located between Europe, Asia, and Africa - the intersection of many continents, giving it a geostrategic position in the Mediterranean. Therefore, in China's strategy, Greece is the gateway, the bridge between China and Europe.

In the context that Beijing's main gateway to Europe, the UK, has just been closed after the Brexit event, China has more reasons to get closer to Greece.

With its geostrategic position, Greece has become an important link in Beijing's grand strategy of "One Belt, One Road". This is the ambition to create a giant economic corridor connecting China with the whole world, based on infrastructure development and expanding influence westward by land and sea.

Just last year, public opinion saw China take over a key node in Greece, the port of Piraeus. Located on the Mediterranean Sea, the Greek port of Piraeus has long been the “gateway” for Chinese goods to flood into the main European market. By investing specifically in Piraeus, Beijing will also create a solid infrastructure connecting to other parts of Europe, from Athens to the Balkans and Central Europe.

Therefore, in his speech before the visit, Greek Prime Minister Tsipras emphasized that both sides will develop this strategic seaport as best as possible. And behind that speech is a message to China that if Beijing wants Greece to remain in the EU and be the gateway for this country to enter Europe, then it should provide more aid and investment to Athens!

Therefore, with such mutual benefits, without needing a joint announcement, people have seen a new development in China-Greece relations after this trip.

Phuong Hoa