China's embassy in Greece issued a rare and forceful statement rejecting any possibility of selling its controlling stake in Piraeus port, one of Europe's largest maritime facilities.
The rebuke came in response to comments by newly appointed US Ambassador Kimberly Ann Guilfoyle, who suggested Greece should consider selling the strategic port or enhancing alternative facilities to counter Chinese influence.
Beijing accused Washington of displaying a Cold War mentality and attempting to undermine Greek sovereignty.
The diplomatic confrontation highlights growing tensions as the United States seeks to diminish China's foothold in European infrastructure while expanding its own presence in the Mediterranean region.
China's state-owned COSCO Shipping holds a 67% stake in Piraeus, acquired during Greece's devastating debt crisis in 2016, transforming it into a critical hub on the Belt and Road Initiative connecting Asia, Africa, and Europe through maritime trade routes valued at hundreds of billions of dollars annually.
What Did Ambassador Guilfoyle Say About Piraeus Port
In a Friday evening interview with Greek television network ANT1, Ambassador Guilfoyle emphasized the importance of establishing American infrastructure in Greece to support the region and balance Chinese influence at Piraeus.
She suggested there were ways around the current arrangement, including enhancing output at other Greek ports or potentially pursuing a sale of Piraeus itself.
Her comments marked an unusually direct public statement about a sensitive commercial and diplomatic matter.
Guilfoyle, who took office earlier this month as President Donald Trump's envoy to Athens, presented these ideas within the broader context of strengthening US-Greek relations through defense cooperation and energy partnerships.
The ambassador's remarks immediately drew attention from Chinese officials monitoring American activities in the region, prompting Beijing to respond through its diplomatic channels in Athens.
The timing coincided with renewed efforts by the Trump administration to counter China's expanding presence in global port infrastructure.
Did you know?
The majority owner and operator of the port (through the Piraeus Port Authority) is the Chinese state-owned COSCO Shipping (China Ocean Shipping Company), which has driven significant modernization and growth since its initial involvement around 2009.
Why Does China Consider Piraeus Strategically Important
Piraeus sits at the crossroads of three continents and serves as the westernmost anchor of China's Maritime Silk Road, a key component of the Belt and Road Initiative launched in 2013.
The port provides the fastest route for Chinese goods entering European markets, cutting transit time by four to seven days compared to routes through northern European ports like Rotterdam or Hamburg.
This efficiency translates into significant cost savings for Chinese exporters and European importers, conducting billions in annual trade.
Since COSCO assumed operational control in 2009 and expanded to majority ownership in 2016, container throughput at Piraeus increased from approximately 1 million TEUs to over 5.4 million TEUs by 2023.
The Chinese company invested more than 600 million euros in infrastructure improvements, creating thousands of jobs during Greece's economic crisis when European investors remained hesitant.
Piraeus now ranks as the fourth busiest container port in Europe and handles roughly 30% of Chinese goods entering the EU, making it indispensable to Beijing's economic strategy.
How Did COSCO Acquire Control During Greece's Crisis
Greece's sovereign debt crisis, which erupted in 2010, forced the government to accept harsh austerity measures and asset privatization requirements imposed by international creditors known as the Troika.
With European investors wary of Greek assets and the economy contracting by more than 25%, COSCO emerged as one of the few entities willing to commit substantial capital.
In 2016, the Chinese shipping giant purchased a 51% stake in Piraeus Port Authority for 280 million euros, with contractual rights to increase ownership to 67%.
The deal included commitments to invest an additional 350 million euros over subsequent years in port infrastructure, equipment upgrades, and capacity expansion.
COSCO fulfilled these obligations while transforming Piraeus into a modern transhipment hub serving Mediterranean and Black Sea destinations.
In 2021, the company exercised its option to acquire the additional 16% stake for 95 million euros, solidifying its control.
Greek officials at the time praised the investment as sending a strong signal about economic recovery and attracting other international businesses to establish regional distribution centers at the port.
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What Is America's Strategy to Counter Chinese Influence
The United States has moved aggressively to expand its strategic footprint in Greece through defense agreements and energy partnerships designed to offer Athens alternatives to Chinese investment.
An updated Mutual Defense Cooperation Agreement grants American forces extended access to Greek military facilities in Alexandroupolis, Litochoro, Volos, and the naval base at Souda Bay on Crete.
These installations provide critical logistics support for NATO operations in the Balkans and Eastern Mediterranean.
Washington is particularly focused on developing Alexandroupolis in northeastern Greece as a regional energy hub to counter Russian influence while simultaneously presenting it as an alternative to Piraeus for certain commercial activities.
The US has facilitated agreements for American companies to export liquefied natural gas through Greece to the Balkans and Central European markets.
Ambassador Guilfoyle's comments about enhancing other Greek ports likely referenced Alexandroupolis and potentially Elefsina, where recent reports suggest joint US-Greek development plans to create facilities rivaling Chinese-controlled infrastructure.
Can Greece Balance Competing Superpower Interests
Greece finds itself in an increasingly uncomfortable position as strategic competition between Washington and Beijing intensifies across the Mediterranean region.
The country maintains deep defense and political ties with the United States and NATO, while simultaneously benefiting from Chinese investment that revitalized critical infrastructure during its darkest economic period.
Athens has consistently emphasized that its relationship with China is purely commercial and does not compromise its Western security commitments.
The Chinese embassy statement specifically warned that the port must not become a victim of geopolitical confrontation and stressed that Greek-Chinese relations cannot be influenced by third parties.
This language reflects Beijing's concern that American pressure might force Greece to reconsider the terms of its arrangement with COSCO.
However, forcing a premature termination of the contract could expose Greece to substantial financial penalties and damage its reputation as an investment destination for other international partners.
Greek officials have not publicly commented on Ambassador Guilfoyle's remarks or the Chinese response, suggesting a deliberate strategy to avoid inflaming tensions with either power.
Prime Minister Kyriakos Mitsotakis has previously characterized the US defense agreement as depicting a new reality where Greece serves as America's main partner in the region, while also describing Chinese investment as vital for economic recovery.
As both superpowers compete for influence through infrastructure, energy, and security arrangements, Athens must navigate these competing interests without alienating either side or compromising its sovereignty and economic interests.
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