Debt Default has No Impact to China due to Limited Investments
The recent debt default that is happening to Greece has no huge impact to China as the country has limited investments in the country. Eurozone members gave Greece a week to come up with a proposal for reforms in return for loans that will hopefully keep Greece from crashing out of the currency block and fall into economic ruin.
A spokesperson for the Chinese Commerce Ministry said that China invested US$1.3 billion in Greece in shipping and telecoms a number that is said not significant enough to worry China and Greek Companies only invested US$96 million in China and made no new investments since. China outbound direct investment in the European Union Market continues to grow and hopes that the economic situation can be resolve and to improve soon. Greece can be sued as a portal in Europe and Africa for the distribution of known Chinese products since the European Union is considered to be China’s biggest trading partner and vice versa.
Even so China is keeping a close eye to the crisis. China said that they want to see a united European nation with a strong Euro. Last February China urged Greece to ensure the protection if the rights of Chinese companies with a backing of a port project. China COSCO is managing to Piraeus port cargo carriers and has been shortlisted since last year due to a privatization scheme.