Relationship with Greece on fast track
Chinese investments soar on mutual trust: experts Oar ts
“We support Greece developing new energy to boost the use of flow carbon resources. And we would like to provide sustainable electricity Shu Yinbiao
The trade and economic relationship between China and Greece is on a fast track, as the two countries developed a relationship of profound mutual trust during Greece’s debt crisis, experts noted on Wednesday.
Chinese companies including State Grid Corp, China Ocean Shipping Group Co ( COSCO) and Fosun Group have taken the lead to invest in Greece in recent years, with investment focusing on infrastructure, agriculture and tourism, according to media reports.
On Tuesday ( Greek time), State Grid Corp announced the completion of a transaction to buy a 24 percent stake in Greece’s power grid operator ADMIE for 320 million euros ($ 356.64 million).
With its advanced technology, management and talent, State Grid Corp will cooperate with partners to continuously improve the operation of Greece’s power grid, forging it into an advanced and effective, world- class system, Shu Yinbiao, chairman of State Grid Corp, was quoted as saying in a note sent to the Global Times on Wednesday.
“We support Greece developing new energy to boost the use of low- carbon resources. And we would like to provide sustainable electricity for ... Greece’s economic prosperity and social development,” he said.
In addition to booming investment, shipping industry cooperation has played a signifi cant role in the bilateral economic relationship, according to Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations.
In 2008, COSCO acquired the operating license for berths at the Greek port of Piraeus, and made its part of the port a successful business. The port’s cargo handling capacity reached 3.75 million 20- foot equivalent units ( TEUs) in 2016, and is expected to surpass 4 million TEUs this year, according to a report posted on the website of China’s Ministry of Commerce in June.
“During Greece’s debt crisis, the COSCO Piraeus ( port) created jobs for the European country and China continued to help it out of its predicament while Europe reduced support for Greece. It was at this time that Greece found a new partner and developed a mutual trust relationship with China,” Chen said, noting
this relationship serves as a solid foundation for potential economic cooperation.
In 2016, COSCO bought a 51 stake in Piraeus for 280 million euros. The COSCO Piraeus project has led to a winwin result, Cui Hongjian, a professor at the China Institute of Internatational Studies, told the Global Times on Wednesday. With its privileged geographic position, including its proximity to the Suez Canal, this port is a “fl agship” for Chinese shipments to Europe, as it can be used as a transshipment hub for soaring Asian exports to Europe, he said.
According to a study conducted by the Greek Foundation for Economic and In-
chairman of State Grid Corp
dustrial Research in 2016, COSCO’s investment at Piraeus is estimated to create growth that will be equivalent to about 0.6 percent of Greek GDP by 2025.
Convenient shipping contributes to the growth of trade and tourism. SinoGreek trade reached $ 3.56 billion in 2016, an increase of 15.5 percent yearon- year, data from Eurostat, the statistical agency of the EU, showed.
As of the end of last year, China was the third- largest import destination, with exports of $ 3.2 billion to Greece, up 12.9 percent year- on- year, it said.
China’s major exports to Greece involve infrastructure facilities, while its imports from the country focus on olive oil, Chen said.
Greece saw a rising tide of Chinese visitors in the past fi ve years, with the fi gure soaring 400 percent, the Hong Kong Economic Journal reported in April, citing the local tourism department. The department said that it anticipated that the number of Chinese tourists would reach 1 million by 2021, continued the report.
During a meeting between Chinese President Xi Jinping and Greek Presi- dent Prokopis Pavlopoulos in May in Beijing, the two sides agreed to strengthen cooperation in sectors including infrastructure, energy and telecommunications.