ABSTRACT
COSCO Pacific’s deep involvement in the Greek Port of Piraeus has spurred a surfeit of commentary about its effects, much of it excessively laudatory or critical. This chapter argues, like many others, that China’s participation has dramatically enhanced the port’s performance and also acknowledges its noteworthy job-creation effects. It also shows, however, that Chinese involvement has not produced significant positive effects with respect to Greek trade, foreign direct investment (FDI), or various other metrics like government revenues. This analysis stresses that Chinese participation per se did not preordain better port results but that better performance flowed from a confluence of economic and political factors at various levels. In addition, this study challenges the thesis that China FDI in Piraeus is the sole driver of a harsher working environment, highlighting that larger shipping industry trends also matter. The chapter further calls into question the assertion that Greek foreign policy has been dramatically transformed by the arrival of Chinese investment and identifies other domestic and international factors shaping Greek foreign policy. In total, the Piraeus case demonstrates that we must consider the domestic and international political and economic context to understand the dynamics of seaport cases where China has a major role.
