China 'spends money' to find promised land in Greece

This is the first visit by a Chinese head of state to Greece in 11 years. The meetings and shuttle visits between the two leaders seem to signal strong developments between Beijing and Athens, in the context that both find strategic benefits from the other!

The one with money - the one with land

It is no coincidence that the Greek press in recent days has not spared words of expectation for breakthrough developments and "deal fever" between the two countries during President Xi Jinping's visit to China. Looking back at the meeting at the fair held in Shanghai recently, public opinion must still remember a remarkable proposal of Xi Jinping, which is the idea of ​​turning Greece into a "logistics center" with the task of handling the amount of Chinese goods that are exported to Europe every day and every hour. Therefore, it is expected that during this visit, the Chinese President will visit the port of Piraeus - a seaport located on the Mediterranean Sea owned by Greece but operated and managed by China. At the same time, Xi Jinping will also witness the opening of a branch of the Bank of China in Athens - an important step to facilitate the roadmap to promote strong investment in Greece.

Chinese President Xi Jinping and his wife are visiting Greece for the first time in 11 years. Photo: Xinhua

Meanwhile, in Greece, Prime Minister Mitsotakis, who was elected last July, has set a goal of turning the country into a foreign investment center and a leading export economy in the region. Obviously, in the context of the economy still in a difficult situation after many years of crisis, this goal can only be realized if Greece seeks huge financial support. And everyone understands that Beijing is a partner who is always ready to bring money to support as well as trade off the strategic goals of this country.

In a recent interview, Greek Foreign Minister Nikos Dendias did not hesitate to affirm that relations with China are a priority for this country and vice versa. According to Mr. Dendias, during the most difficult times when Athens was in economic crisis, Beijing was still not afraid to take risks investing in this country. It is expected that during this visit, the two sides will continue to sign a series of cooperation agreements in many fields such as education, maritime transport and energy...

Chinese investors alone have invested more than 1 billion euros in Greece's real estate sector.

In fact, without the need for this trip, the public has witnessed the explosion of Chinese real estate investors in Greece. The reason is that the Greek "Golden Visa" program launched in 2013 has created the easiest conditions for foreign investors. By investing only about 275,000 USD in real estate, investors have obtained a golden visa and can renew it every 5 years on the condition that they still own the real estate. And after 7 years of investing and living, investors can own Greek nationality, becoming a European citizen.

Therefore, according to data from the Central Bank of Greece, the “Golden Visa” program has stimulated the country’s property market, which has been sluggish for many years. To date, Chinese investors alone have invested more than 1 billion euros in the Greek real estate sector. Even “Chinatowns” have appeared in Greece right in the capital Athens and some neighboring suburbs.

Chinese President Xi Jinping meets with Greek Prime Minister Kyriakos Mitsotakis at the China International Import Expo in Shanghai, China on November 4, 2019. Photo: Xinhua

EU, US restless

In his statement, Greek Prime Minister Mitsotakis emphasized that Athens is strengthening cooperation with China, seeking economic benefits but will not disrupt or affect relations with allies the US and the European Union (EU). Mr. Mitsotakis also reassured Western allies that Greece is very aware of China's calculations as well as understands the concerns of European countries. And that the Greek government will know how to balance economic and trade cooperation with China but at the same time control Beijing's promotion of other geostrategic interests in Eastern Europe.

However, it seems that the European Union and the United States are not unduly worried when China suddenly shows special interest in its ally Greece. Especially when Beijing is willing to open the door for Athens to participate more deeply and play a greater role in the 17+1 cooperation mechanism initiated and led by Beijing, including Eastern and Southeast European countries, including countries inside and outside the European Union (EU). It should be recalled that Greece officially joined this mechanism at the beginning of this year with China's constant encouragement. Also, many other countries in the region are not interested in this mechanism because they have not seen the great economic benefits and potential.

US Secretary of State Mike Pompeo also warned that if not careful, Greece could fall into a "debt trap" set by China.

However, EU officials still accuse China of aiming to divide the bloc, affecting the process of solidarity of this bloc. Moreover, US Secretary of State Mike Pompeo has also warned that, if not careful, Greece could fall into a "debt trap" set by China. This is not a new strategy, as Beijing has "spread money" in many places, using economic terms to force partner countries to receive support to participate in agreements that benefit China.

Piraeus Port - Greece's busiest port in the Mediterranean is now largely under the control and operation of the Cosco Group, China. Photo: New York Times

Typically, up to now, Greece has received less than 1% of total Chinese investment in Europe, but in return for Beijing controlling and expanding the most important seaport in the Mediterranean, Piraeus. By October, Athens had approved and passed two-thirds of the port expansion plan, with investments worth $670 million in projects including a new cruise port, four hotels and a car terminal. Although one-third of the expansion plan is still under review, it is expected that there will be suggestions for approval during this visit by Chinese President Xi Jinping.

Despite the concerns of his allies, Prime Minister Mitsotakis, for his part, sees the agreements with Beijing as an important foundation and support for Greece to increase its position and voice in the region, especially in Southeast Europe and the Western Balkans. It should be recalled that Greece has also signed China's "Belt and Road" project. Given the huge economic benefits that China brings, Greece has even warned that the EU's concerns must not harm its cooperation agreements with Beijing. In such a context, maintaining its alliance with Europe while cooperating in a balanced manner with Beijing will certainly be a big challenge for Greek Prime Minister Mitsotakis when the Chinese President visits this time!