A HISTORIC WEEK
Highlevel November visits make Greece well placed to build a bridge between the EU and China
TThe author is director of the Eu-china Program at the Centre International de Formation Européenne
he story of an amazing development in the Mediterranean goes back to a decision taken 11 years ago that nobody could see would lead to such transformation.
The Port of Piraeus, Greece’s largest port lying on the western coast of the Aegean Sea, is a bustling transshipment hub today with its turnover continuously increasing and creating more jobs. The prospects of a port once rusty and in decline are looking bright.
The change started in November 2008 with the China Ocean Shipping Co. (COSCO) opening negotiations to run the port. Then Chinese President Hu Jintao arrived in Greek capital Athens on a state visit to promote indepth development of the comprehensive strategic partnership between the two countries. He and Konstantinos Karamanlis, then Prime Minister of Greece, oversaw the signing of an agreement that gave the majority shareholder in Piraeus a concession to run two container terminals at Piraeus for 35 years.
At that time, almost no one could imagine that this investment would evolve into a success story for both countries, and more importantly, as a model for Chinese companies in Europe and the rolling out of the Belt and Road Initiative.
Flagship project
COSCO’S investment in Piraeus is often described as the “head of the dragon” in depicting Chinese investors’ interest in Greece, being the flagship project of Chinese investment. The implementation of the Piraeus master plan created additional opportunities in the cruise sector, the ship repairing zone, tourism and logistics.
Drawing on this paradigm, the two countries are looking at collaboration beyond the head of the dragon. The first week of November was historic in that respect.
Prime Minister Kyriakos Mitsotakis went to Shanghai to attend the Second China International Import Expo and subsequently, President Xi Jinping arrived in Athens on November 10, the first visit by a Chinese president after Hu’s 2008 trip, and after Xi’s brief stopover on the island of Rhodes on his way to Brazil in 2014. Two important meetings between the two leaders within a few days indicated their joint will to elevate the bilateral partnership to new heights.
The timing was significant. Greece held its national election in July when the victory of the conservative New Democracy party led to a governmental change after four and a half years.
The previous government had been friendly toward China. Then Prime Minister Alexis Tsipras, for instance, participated in both the First Belt and Road Forum for International Cooperation in May 2017 and its second edition in April 2019.
It was also during his term that Greece signed a memorandum of understanding with China to join the Belt and Road Initiative and successfully applied to be part of the then 16+1 Initiative, the grouping of China and 16 Central and Eastern European countries, which consequently became 17+1.
Following the electoral results in Greece, some questions were naturally raised over the continuity of this foreign policy but Mitsotakis is determined to follow the path of his predecessor. This stance generates optimism about the future of the bilateral partnership.
Closer ties
Greece and China are endeavoring to work together in the fields of energy, telecommunications, infrastructure, banking and scientific research. Development Minister Adonis Georgiadis visited China in October and signed a memorandum of understanding on cooperation in information and telecommunications.
However, new business deals and investments require patience. COSCO’S experience in Piraeus is a telling example.
While the Chinese company had been interested since 2013 in buying a majority stake in the Piraeus Port Authority, the company that managed and ran the port, it had to wait a few years until the Greek authorities organized a tender in December 2015.
Greece is an EU member state and needs to follow specific guidelines before proceeding to privatize state- owned enterprises. Transparency, sustainability and
environmental protection are priorities.
Greece-china relations not only have a bilateral dimension, their regional nature is also gradually gaining momentum. The 17+1 fosters interconnectivity between Southeastern, Central and Eastern Europe. Following the implementation of the Prespes Agreement, the 2018 pact between Greece and North Macedonia, in which the latter has agreed to call itself North Macedonia instead of Macedonia, an area to which Greece has historical and cultural claims, obstacles for cooperation between the two are likely to be removed.
Subsequently, the construction of a high-speed rail connecting Piraeus with Hungarian capital Budapest might become a reality, further boosting trade in the region. Greek and Chinese companies are building consortiums to explore jointly bidding for future tenders.
In the summer of 2018, China Energy Investment, one of the largest power companies in the world, sealed a deal with Greece’s Copelouzos Group for participation in wind power parks in Greece. According to the official announcement, the synergy between the two groups, both in the green energy sector and upgraded, environmentally friendly energy generating units, will possibly expand in the Balkans as well as in other European countries.
Taking into account that the Belt and Road Initiative is an inclusive project, the 17+1 can function as a model for China to deepen its engagement in other neighboring regions.
The Mediterranean deserves particular attention. Greece is interested in becoming a hub for the 17+1 as well as for new initiatives in this basin. Discussions between Greece and China will thus acquire a different but constructive character in order for dialogue among Mediterranean countries to be revitalized. Culture, tourism and education could inspire an unprecedented will for cooperation among countries of different civilizations and religions.
Cultural bonds
The Mediterranean currently lacks a vision and there is certainly potential for the community with a shared future concept, outlined by Xi, to be applied and bring win-win results and shared prosperity. Greek and Chinese think tanks should not miss the chance of working together in that regard in order to propose original connectivity policies.
Greece and China represent two ancient civilizations. The cultural link, sketched out in May when Greek President Prokopis Pavlopoulos gave a speech after Xi at the Conference on Dialogue of Asian Civilizations in Beijing, brings the two countries closer. There is a mutual understanding that cannot be easily explained by other member states of the EU. Culture and politics do intersect and Greece’s responsibility thus becomes higher.
While the EU attempts to develop its connectivity strategy toward Asia, it needs to find a new modus vivendi with China that can hardly be achieved in Cold War terms. Greece needs to be a bridge facilitating better communication between the EU and China. The events that happened in the first week of November might inspire this will to mediate.