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Amid headwinds, Greece gives Cosco green light for partial Piraeus port upgrade
- In a tale of two new eras, Athens walks a fine line between Chinese investments and a US defence pledge
- The decision comes soon after US Secretary of State Mike Pompeo visited Athens and warned about Chinese influence in Europe
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Greece’s new government has rejected nearly a third of Chinese shipping giant Cosco’s planned upgrade for the Port of Piraeus, a project that Beijing sees as one of the biggest Chinese-managed infrastructure successes in Europe.
But in its announcement on Thursday, the Greek administration – which came to power in July – said it had approved the rest of Cosco’s port plans.
The decision comes as Athens tries to balance the benefits of investment from China’s Belt and Road Initiative, US opposition to partnerships with Beijing, and the European Union’s own call for more stringent investment screening mechanisms.
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“Greece is trying to walk a fine line. [With this] China doesn’t lose face in the end because it keeps two-thirds of the expansion plan,” a Greek government source with knowledge of the negotiations said. “We sorely need investments to boost the economy.”
The decision also comes less than a week after US Secretary of State Mike Pompeo visited Athens and repeatedly warned about Chinese influence in Europe.
[China] is using economic means to coerce countries into lopsided deals that benefit Beijing and leave its clients mired in debt
“Take China … which is using economic means to coerce countries into lopsided deals that benefit Beijing and leave its clients mired in debt,” Pompeo said.
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