China to Increase Investment in Eastern and Central Europe
China stated that it will be creating a new investment fund of US$3 billion that will target the Central and Eastern Europe to strengthen their foothold in the region to give way to a wider European Union. China sees the Central and Eastern Europe a potential market and a bridgehead to a wider EU which is drawn by relatively low wages, scope for development, and educated workforces.
Chinese investments usually comes in the form of loans that is financed by China’s State owned banks that was meant for projects that is carried out by Chinese companies especially in the sector of infrastructure and energy. Chinese Premier Li Keqiang addressed a summit in Belgrade in front of the leaders of 16 Central and European countries stated that China is open to new models of investment and financing.
Last 2012, China announced a US$ 10 billion credit line for a region that compromise some of the EU newest member and other in the Western Balkman which are not yet a part of the bloc but is trying to get there. These new project fits perfectly with China;s plans to expand their presence in Greece wherein the Chinese shipping carrier COSCO won the concession to upgrade and manage two container cargo piers as a part of the gateway to the Balkans and into Central Europe.