New government can derive major benefits from continuing to work with Beijing to be a gateway to Europe

Change was in the wind when Syriza swept to victory in Greece's election on Jan 25 on an anti-austerity, pro-growth platform, riding a wave of anger over German-backed austerity policies.

Immediately after the swearing in of the new prime minister, Alexis Tsipras, who was a member of the Greek Communist Party in his youth, he was driven to the Kesariani shooting range, a working class neighborhood of Athens where the occupying German army during World War II executed 200 Greek resistance fighters mainly from the left. There he laid flowers on a memorial built in their memory.

The government's position has been magnified by anti-German rhetoric reinforced by the new government's junior partner, Independent Greeks (Anel) Party, led by Panos Kammenos, a neoliberal, nationalist, anti-troika and anti-German right-wing politician who is also the new minister of defense.

All this will necessitate forging or, in the case of China, reinforcing new partnerships that will help finance growth in the Greek economy.

President Vladimir Putin of Russia was the first foreign leader to congratulate Tsipras, but Russia has its own problems to solve.

Foreign investments are absolutely necessary for sparking growth in Greece, and investments from China can be based on just the mutual interests of the two countries, free of the memorandums signed with the European Union and the International Monetary Fund that carry so many negative associations in the minds of Greeks.

A Reuters report quoted Thodoris Dritsas, the deputy minister in charge of shipping, as saying, the new government announced on Jan 27 it would halt the sale of a majority stake in the port of Piraeus, Greece's biggest, begun by the previous government.

Greece had shortlisted the giant China Ocean Shipping (Group) Company and four other suitors as potential buyers of a 67 percent stake in Piraeus Port Authority last year under its privatization scheme agreed with its international lenders, the report said.

"We will not sell a majority stake in Piraeus port," Dritsas said. "The Cosco deal will be reviewed to the benefit of the Greek people."

There is no indication, however, that that should affect the cooperation between China and Greece that has been mutually beneficial.

The Piraeus Container Terminal, a subsidiary of COSCO, launched operations in Greece at Pier II in 2009, with a plan to turn Piraeus port into a leading container terminal in the Mediterranean Sea region, and since has also built Pier III and posted remarkable results.

Data from COSCO show that from January to November, 2.73 million containers were handled at the port's Piers II and III with the total number of containers rising to 3.7 million.

Furthermore, the data also explain the amicable agreement between the two sides, which has been approved by the EU Competition Commission, the Court of Auditors and the board meetings of both companies. According to the agreement's terms, COSCO will make an additional investment of 230 million euros ($261 million) for the creation of the new West Pier III. After the new pier's construction, the total capacity of Piraeus' port will be increased to 7.2 million containers a year, while the part that is managed by COSCO will increase its capacity from 3.7 million to 6.2 million containers.

On Jan 22, Chinese Premier Li Keqiang celebrated the inauguration of the expansion of Pier III of the container terminal, Xinhua reported.

The new Greek government will realize very soon, if it has not already done so, that Greece could become the gateway to Europe for China, bringing immense benefits to the Greek people and also act as a counterbalance to German and European Union pressure.

The Chinese consortium that has just bought 50 percent and the management of Toulouse airport in France are interested in buying Athens International Airport, presently managed and partly owned by a Canadian pension fund. Other projects of interest to Chinese firms are the construction of a new airport on the island of Crete, the establishment of logistic centers to move merchandise arriving in Piraeus' port to Central Europe, and modernization of Greek railways.

The cooperation has gone both ways. The development of China as a shipbuilding power has been assisted by Greek shippers who have signed multi-billion-dollar loans from international and Chinese banks to build Greek-owned ships in Chinese shipyards. Greek marine engineers supervise the building of those ships in the Chinese shipyards.

Also, the recession in Greece has led many Greek businessmen to look for export markets, and China is at the top in the list of priorities given its size and the appetite for Greek food products as well as services.

The relationship between the two countries that were a beacon of civilization in their respective geographical areas in ancient times could not be better. Chinese tourists visiting Greece in increasing numbers particularly during off-peak season help with achieving the goal for an all-year-long tourist period. They have only words of praise for their Greek hosts; their only complaint is lack of a direct air link and more shopping possibilities.

Several Chinese families have taken advantage of the immigration law and buy apartments in return for permanent Schengen visas good in many European countries. At least 30,000 Chinese nationals have moved to Greece to set up businesses in retail, import-export, tourist services and renewable energy.

The Chinese have proven that they are very good residents and employers when established in Greece. Greece should help with assisting in schools for the children of Chinese residents as well as other amenities.

The partnership that Chinese President Xi Jinping referenced in July when he said his country would strengthen mutually beneficial cooperation with Greece can be of great help to Greece as it continues on its journey.

The author, managing partner at Silky Financiers Ltd, has done business in China since 2008. The views do not necessarily reflect those of China Daily.

(China Daily European Weekly 01/30/2015 page11)