USA contributed the largest shipping company COSCO Shipping to the “list of military companies”. Now China’s interests in Greece are in question Piraeus.
US Department of Defense contributed a Chinese group COSCO Shipping – the largest sea carrier in the world – to the list of “Chinese military companies.” The Pentagon’s decision raised a wave of questions in Greecewhere COSCO controls the port Piraeus – China’s most important maritime hub in Europe.
The United States explains this step as a fight against the “strategy of military-civil merger of the PRC,” through which Beijing gains access to the technologies and experience of Western companies. The list also includes subsidiaries: COSCO Shipping (North America) And COSCO Shipping Finance. Formally, no sanctions have been introduced, but for markets and partners this status is tantamount to a signal of caution.
Piraeus between Washington and Beijing
Since 2016 COSCO owns 67% shares Piraeus Port Authority (OLP). Investments in infrastructure have turned the port into one of the five largest in Europe. Now any transaction involving COSCO in Greece may become the subject of close attention by American banks and insurance companies. Financial institutions, fearing secondary sanctions, are already limiting cooperation with companies associated with China.
Government Kyriakos Mitsotakis finds himself in a difficult position. On the one hand, Piraeus is a symbol of the Greek-Chinese economic partnership and the most important source of income for the Greek economy. On the other hand – USA and EU They are increasingly insisting on limiting the Chinese presence in European infrastructure. Washington may demand that Athens “reassess the risks” and revise long-term contracts with COSCO.
Economic and reputational risks
Although inclusion on the “military list” does not entail immediate sanctions, it already affects the cost of cargo insurance and project financing in Piraeus. International banks and insurance agencies may require additional guarantees or increase loan rates. In the long term, this may slow down the development of the port and reduce its competitiveness compared to Rotterdam or Hamburg.
In an official statement COSCO Shipping insisted that its subsidiaries are “non-military in nature” and strictly comply with all US laws. However, Washington increasingly views maritime logistics as part of a strategic competition with Beijing.
Beijing’s reaction and prospects for Greece
Official representative of the Ministry of Foreign Affairs of the People’s Republic of China Guo Jiakun called on the United States to “immediately lift illegal unilateral sanctions” and promised that China “will take all necessary measures to protect the legitimate interests of its companies.” Beijing sees Piraeus as a key element of the initiative “One Belt – One Road”and any weakening of COSCO’s position in Greece is perceived there as a blow to China’s global logistics network.
For Athens it is a matter of economic balance. The Port of Piraeus provides up to 6% of Attica region’s GDP and tens of thousands of jobs. Any financial or political disruption to COSCO could cause a chain reaction in the Greek economy, from declining income to rising unemployment.
Analysts say the US decision shows that the struggle for geo-economic influence has reached a new level. Now on the global maritime scene there will be movement not only of containers, but also of political impulses. And Greece, as always, will have to live between two oceans – influence and dependence.
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