By Panos Mourdoukoutas
When I envisioned #china supporting a pro-Chinese party to save the ailing Greek economy from its worst post War crisis and eventually intrude into #europe in an upcoming novel, The Dragon Acropolis Plan, I was concerned that the plot might sound implausible to readers.
Supporting my story is an upcoming summit on June 29 in Brussels, where China is expected to pledge a multi-billion dollar investment in Europe’s new infrastructure fund, according to a draft communique seen by Reuters.
The Brussel’s summit comes less than three months after China’s AIIB initiative. Through the initiative, China has managed to lure many European countries into joining the bank as founding members – drawing angry protests from the US, as some of these countries are America’s closest allies.
“Those European countries must be straining at the leash to get free of Washington’s grip,” wrote a reader in response to a previous piece on this issue. “Pressing those countries into supporting sanctions against Russia when it definitely wasn’t in their interest to do so is just one example of how Washington gets the EU to look like a whole bunch of poodles.”
China is already a big investor in the Greek infrastructure, with state-owned COSCO having spent close to five billion euros to establish a presence at the country’s largest port, Piraeus.
In addition, the two countries have enjoyed close shipping ties, with Greek tycoons building ships in Chinese shipyards, and Chinese companies leasing them to carry resources into China, and goods out of China.
As seen in the table below, China’s checkbook diplomacy isn’t limited to Europe. It extends to every continent, quietly challenging America’s global dominance – one bank, one port, one country at a time.
A Sample Of China’s Checkbook Diplomacy
Silk Road Fund
Latin America Fund
Funding a development bank together with Russia, Brazil, India, and South Africa
Europe Infrastructure Fund
Whether America likes it or not, China will be soon writing the rules of modern globalization, paving the way for the rise of Chinese corporations, even in the Old Continent, once considered a natural extension of the American free enterprise system.
About the author: I’m Professor and Chair of the Department of Economics at LIU Post in New York. I’ve published several articles in professional journals and magazines, including Barron’s, The New York Times, Japan Times, Newsday, Plain Dealer, Edge Singapore, European Management Review, Management International Review, and Journal of Risk and Insurance. I’ve have also published several books, including Collective Entrepreneurship, The Ten Golden Rules, WOM and Buzz Marketing, #business Strategy in a Semiglobal Economy, China’s Challenge: Imitation or Innovation in International Business, and New Emerging Japanese Economy: Opportunity and Strategy for World Business. I’ve traveled extensively throughout the world giving lectures and seminars for private and government organizations, including Beijing Academy of Social Science, Nagoya University, Tokyo Science University, Keimung University, University of Adelaide, Saint Gallen University, Duisburg University, University of Edinburgh, and Athens University of Economics and Business. Interests: Global markets, business, investment strategy, personal success.