China Floods Greece With Money, Saves Europe?

The Asian giant has plans to transform Mediterranean ports

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Could the newest savior of crisis-racked Greece and troubled Europe be China? The country is not only being floated as a potential destination for European exports; Chinese firms and the Chinese government are also becoming more directly involved in Greece. This move, as The Washington Post's Anthony Faiola notes, has the Greek Communist Party "ironically" pitted against it, as labor unions are manhandled into accepting Chinese plans. As the sovereign debt drama in Europe continues, what's the future for this vision of Chinese rescue?

  • The Story in Greece Anthony Faiola relates and evaluates the interesting developments here: "the Chinese are planning to pump hundreds of millions ---perhaps billions--of euros" into the country, he explains. "The cornerstone of those plans is the transformation of the Mediterranean port of Piraeus into the Rotterdam of the south, creating a modern gateway linking Chinese factories with consumers across Europe and North Africa." The Greek government is trading control for money, essentially--"the Chinese have pledged to spend $700 million to construct a new pier and upgrade existing docks." The ultimate goal for China, for which these Greek investments are a stepping stone, is "to create a network of roads, pipelines, railroads and port facilities--sort of a modern Silk Road--to boost East-West trade."
  • Translation "As Western investors head for the hills," summarizes Business Insider's Vincent Fernando, "it turns out that China is turing the Greece crisis into an opportunity for expansion."
  • For Exports, 'China Is Not the Answer' Economist Rebecca Wilder at Angry Bear evaluates a recent report suggesting investors view "China [as] the panacea for the Eurozone," a potential buyer for European goods. She's not so sure. China might take some German and Belgian exports, she says, but the rest of the Eurozone mostly relies on the U.S. and U.K.
This article is from the archive of our partner The Wire.