Tuesday, June 15, 2010

The Debts of the Spenders: Greece Attracts Chinese Investment

Earlier this year, China had rebuffed efforts by the Greek government to invest (e.g.bailout its moribund banking sector). But apparently all that has changed now. China is apparently realizing its responsibility to the rest of the world as a key pillar of economic stability - even if such efforts may lead to months or even years of initial losses.

A delegation led by Zhang Dejiang, a Chinese vice-premier, will seal a series
of agreements on Tuesday with local companies, a Greek government official

“These concern maritime affairs, telecoms and a project to renovate a
landmark tower building in Athens’ port of Piraeus,” the official said.

Deals for joint ventures, charter agreements and shipbuilding deals worth
€500m ($615m) with Greek shipping companies will also be signed.

China’s state shipping company Cosco already controls a container terminal at Piraeus under a €3.4bn long-term concession deal. Cosco is expected to make a joint bid later this year with Greece’s state ports company to create a €150m-€200m logistics hub near Athens to distribute goods for China in the Balkans.


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