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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.

“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.

While in Athens, Pompeo sealed a revised mutual defence cooperation agreement with the new government under Prime Minister Kyriakos Mitsotakis, a pact that Pompeo said represented “a new era” in US-Greece relations.

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But on Thursday, the Greek government declared the dawn of another “new era” – this time with China, by approving US$670 million of Cosco’s investment master plan.

“An emblematic investment for Greece starts immediately. A new era dawns for the Piraeus Port,” the Greek shipping ministry said, according to Xinhua, China’s official news agency.

The approval will allow Cosco to build a new cruise port, four hotels, a car terminal, and improve infrastructure and maintenance at the port.

But two other intended projects, worth about US$300 million, were blocked: the extension of the car terminal to nearby Drapetsona; and the expansion of a container terminal.

Greece says EU’s China concerns must not harm its economic interests

According to Greek media reports, Greece’s shipping minister, Ioannis Plakiotakis, said he was satisfied with the decision.

“The investments planned by [the Piraeus Port Authority, controlled by Cosco] are upgrading the Port of Piraeus and creating new jobs,” Plakiotakis said, adding: “The approval of the master plan proves that our country is investment friendly.”

Piraeus Port Authority head Yu Zenggang applauded the Greek government’s decision, saying it was granted after “a long waiting period”, according to Xinhua.

Cosco acquired a majority stake in the port authority in 2016 after winning an international tender. Its subsidiary, Piraeus Container Terminal, has managed the port’s container terminals since 2009.

This article appeared in the South China Morning Post print edition as: A Third of cosco’s plans rejected

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