China's Greek feast

Greece has been increasing exports to China over the past few decades, through strong shipping and investment cooperation, and is now looking to further expand the range of products exported. The country last year exported raw marble, aluminum tapes, cotton, copper scrap and integrated circuits to China, with a total value of US$72.7 million, compared with $33 million in 1990.

China exported $1.75 billion worth of goods to Greece in 2004, compared with $117.5 million in 1990. The main products shipped were air conditioners, vessels, toys, computer hardware, handbags and videotapes. "Greece has been attaching great importance to the promising Chinese market," said Evr Stylianidis, deputy minister of the Greek Ministry for Foreign Affairs, which also oversees the country's international economic policies.

Investment is an important aspect of the economic cooperation between the two countries, although no specific investment figures are currently available. Active Chinese investors in Greece include China Ocean Shipping Co (COSCO), China Seamen Club Services Co and big Chinese telecommunications player ZTE.

Greek investors are concentrated in the materials sector, although that could soon change. Greece aims for future Chinese investments to be concentrated in sectors such as tourism, renewable energy sources and port construction and upgrading, according to Stylianidis.

Greek mining company S&B set up a perlite quarrying and processing plant at Xinyang, in central China's Henan province. The output of the plant is partially absorbed by the Chinese market and partially exported.

Cosmos Building Materials Co Ltd, which is involved in marble cutting and processing, has been operating in Shanghai. Polcor China Ltd, which produces and applies oxides used as coatings for ship metal surfaces, has been active in China for several years.

Shipping and port upgrading constitute a vitally important aspect of economic cooperation between China and Greece. Greece's mercantile fleet is a world-class player, carrying 19-20% of the world's total volume of cargo annually, and the Chinese economy has been on the fast track in recent years, which puts increasingly greater demand for maritime transportation, according to John Tzoannos, secretary general of the Greek Ministry of Mercantile Marine.

Greek oil tankers transport 50% of the world's seaborne transported oil; about 90% of China's foreign-trade goods and oil are shipped by sea, of which Greek vessels claim a substantial share, according to Tzoannos. Chinese shipyards are busy building vessels of various sizes and purposes for Greek shipowners.

About 100 ships have been, are being and will be built by Chinese shipyards for Greece between 2004 and this year, said Nicolas Efthymiou, chairman of the Union of Greek Shipowners.

Greece has been the largest client for Japanese shipbuilders in the past 50 years, but now the focus is shifting to China, according to Stylianidis. He expressed the hope that Greek ships would be able to carry more Chinese cargo. "We just help create favorable conditions, the rest is left to market forces," said Tzoannos.

The privatization of some facilities in significant ports such as Piraeus, which handles almost 60% of all Greek shipping, is in the works by the Greek authorities. This means foreign capital will be welcomed to play a part in containerization, a world tendency towards shipping modernization.

Greek port authorities are eyeing Chinese shipping players such as COSCO, which is showing a strong interest in Salonika and Piraeus, according to Tzoannos. Setting up a commodity transfer center in Greek ports would allow Chinese goods to go further into Balkan countries and other neighboring areas, according to the ministry.