The acquisition and management of the Port of Piraeus by the Chinese state-owned company COSCO has not only been a commercial development but also a significant geopolitical challenge, directly influencing the interests of Greece and its alliances, including the EU and NATO. While COSCO took control of the port with promises to transform it into a thriving development hub, the outcomes of this investment have, in many respects, turned out to be detrimental.
China, the BRICS, and COSCO as a “Trojan Horse”
COSCO, a state-owned enterprise recently designated by the United States as a military-linked company and added to a “blacklist,” epitomizes China’s strategy to expand its global influence through trade and investment. China’s active participation in the BRICS alliance and the ongoing geopolitical confrontations between this bloc and NATO countries—spanning military, economic, and trade domains—highlight its ambition to position itself as a formidable competitor to Western economies and multilateral institutions.
The competition and conflicts over critical trade routes, including China’s Silk Road, India’s Indian Route passing through the Middle East, Israel, Greece, and other European nations, the Development Road via Iraq and Turkey, the North-South Corridor linking Iran to Russia, and Israel’s initiatives to create a route connecting Taiwan to Europe, reflect the intense rivalry between NATO and BRICS nations for dominance over global trade networks.
The Port of Piraeus plays a pivotal role in China’s Belt and Road Initiative (BRI), a strategic effort to establish new trade routes and cement China’s status as a global economic power. At the same time, its function as the principal gateway for Chinese goods entering Europe makes it a critical asset, drawing strategic attention from the EU and NATO, both of which regard China as a geopolitical rival.
Implications for the EU and NATO
China’s increasing influence over the Port of Piraeus poses substantial challenges to the strategic coherence of NATO and the EU:
- Security and interoperability: The involvement of a state-linked Chinese company in such a critical infrastructure raises serious concerns about the potential for China to exert influence over both commercial and military supply chains within Europe. For NATO, which relies on logistical networks that include key ports like Piraeus, growing dependence on Chinese-controlled infrastructure represents a significant strategic vulnerability.
- Trade dominance: The EU, despite its ongoing efforts to diversify trade routes, remains heavily reliant on goods imported via Asia. Under COSCO’s management, the Port of Piraeus has seen the emergence of illegal trade activities, leading to a €200 million penalty imposed on Greece, along with the exposure of drug trafficking operations involving COSCO personnel who were recently arrested.
- Political and diplomatic pressure: China leverages its economic investments to amplify its geopolitical influence, often pressuring countries that depend on such infrastructure projects. Greece, through its partnership with COSCO, finds itself in a precarious position, striving to maintain its commitments to NATO while simultaneously navigating the economic benefits and influence exerted by China.
This delicate balance underscores the broader challenges faced by Western alliances in addressing China’s growing foothold in strategic global trade infrastructure.
The West’s response
The United States and the EU have initiated measures to counterbalance China’s growing influence, including imposing sanctions on companies like COSCO and fostering alternative trade networks. The G7’s Partnership for Global Infrastructure and Investment (PGII) is a strategic initiative aimed at limiting China’s geopolitical reach, while the EU is directing investments toward enhancing the capacity of ports in Northern Europe to reduce reliance on Piraeus.
Simultaneously, NATO is stepping up efforts to secure critical infrastructure essential for military operations, recognizing the strategic importance of safeguarding key logistical hubs from external influence. These coordinated actions highlight the West’s commitment to addressing the challenges posed by China’s expanding presence in global trade and infrastructure.
Τhe urgent need for Greece to reclaim control of Piraeus from COSCO
Greece must take swift and decisive action to end China’s involvement in the Port of Piraeus, regardless of the immediate costs. The justification for this move is rooted in both functional shortcomings and broader strategic imperatives:
1. Functional and social failures of the investment: COSCO has not honored its commitments to foster urban development in the areas surrounding its investments. Promises of quality job creation have gone unfulfilled, with most positions being low-wage, temporary, and devoid of opportunities for career growth. Moreover, mandatory infrastructure investments have placed a significant burden on the local environment. The Greek Council of State has already confirmed that these developments have led to increased pollution and a marked decline in the quality of life for local residents.
2. Severe environmental impact: The operations of the Port of Piraeus contribute to particulate emissions far exceeding acceptable limits, posing serious health risks to nearby communities. Additionally, dredging activities in the Piraiki region have caused extensive pollution in the Saronic Gulf, inflicting irreparable damage to the marine ecosystem and further degrading the area. COSCO’s lack of transparency, particularly in withholding data on pollution levels, raises critical concerns about its accountability and reliability as an operator.
3. Military and strategic concerns: The Port of Piraeus is situated in close proximity to the Salamis Naval Base, one of the most vital military installations for Greece’s defense and the security of the Eastern Mediterranean. The presence of a Chinese state-owned company in such a strategically significant location represents a potential risk to Greece’s national security, positioning the country at the heart of global geopolitical competition. It is important to recall that on January 11, 1944, towards the end of World War II, Piraeus was bombed by Allied forces to target strategic facilities controlled by Nazi German occupiers. This airstrike resulted in the tragic loss of around 5,500 lives, predominantly civilians, thousands of injuries, and widespread destruction of the city’s infrastructure.
Conclusion
The removal of COSCO from the Port of Piraeus is crucial for Greece, not only to protect national security but also to restore environmental and social equilibrium in the region. The ongoing Chinese presence undermines the country’s strategic interests and fails to provide the anticipated benefits to the Greek economy and society. Greece must take decisive action to end China’s control over the port and, at the same time, strengthen its ties with allies who prioritize and support sustainable development and the security of the region.
* Maria Zacharia is a Member of the European Parliament for the Greek political party Course of Freedom (Plefsi Eleftherias). She is a member of the Committee on Petitions and the Delegation for Relations with the United States.