U.S.–China Rivalry in Greece? The country’s ports are back in play

Greece now stands at the crossroads of China’s Belt and Road Initiative and American efforts to counter its expansion. In this context, Athens is seeking to balance between the two powers while drawing benefits from both directions. As a result, Greek ports have become more than just logistical infrastructure – they are now key assets in the region’s changing geopolitical landscape.

Piraeus – China's gateway to Europe

At the center of this geopolitical game stands Piraeus – a Greek port located near Athens on the eastern Mediterranean coast. Piraeus serves as a critical hub on the trade corridor linking Europe, Africa, and Asia. Not long ago, the port was on the brink of collapse, severely impacted by Greece’s financial crisis. A turning point was the arrival of China’s state-owned shipping giant, COSCO (China Ocean Shipping Company). In 2009, the company invested in and assumed control of two main container terminals under a 35-year lease agreement, later expanding its operations to a third terminal in 2016. COSCO also took over the management of the Port of Piraeus, acquiring a 67% stake in the port authority in 2016. That same year, Greece formally joined China’s Belt and Road Initiative (BRI), and in 2019 it became a member of the China–Central and Eastern Europe Cooperation platform (China–CEEC).

Since COSCO took control of the port, Greece has become an important partner for China in advancing the Belt and Road Initiative (BRI). This initiative serves as a key instrument of China’s strategy to expand its global influence, including strengthening its position in Europe. In this context, control over maritime ports holds particular significance for Beijing’s economic ambitions. This is precisely why Piraeus, due to its strategic location, has become China’s natural gateway to Southern Europe. Xi Jinping himself referred to the port as the „Dragon’s head” emphasizing its importance as China’s first major European logistics hub.

Athens' economic success

At the same time, Athens is reaping the benefits. Chinese investment has transformed Piraeus into one of the most prosperous ports in Europe. This has boosted Greece’s role in the maritime and logistics sectors. Over the past several years, the project has delivered significant infrastructure upgrades and created more than 10,000 new jobs.

The latest financial data, published in March 2025 by the Piraeus Port Authority, confirms the port’s sustained growth following COSCO’s takeover. In 2024, the port recorded a record net profit of €87.4 million and increased its revenue to €230.9 million.

COSCO’s investments have led to a significant increase in container throughput. In 2024, the port handled approximately 5.4 million TEU, placing it among the top five container ports in Europe. By comparison, in 2008 – before COSCO’s entry – it handled just 0.7 million TEU. This marks an increase of over 600% in just over a decade – one of the fastest growth rates in the history of European ports.

Washington strikes back

The rapid rise of Chinese influence in the region has triggered a strong response from the United States. The two powers are already clashing over trade and tariffs, and China’s maritime expansion has only further intensified tensions.

The administration of President Donald Trump is now preparing one of the most ambitious maritime initiatives since the 1970s. Its primary objective is to weaken the global network of ports controlled by Beijing. The plan includes a review of Chinese port assets worldwide – including in Piraeus – and the potential acquisition of these assets by Western companies.

Maritime power imbalance

In this domain, however, China is far ahead of the United States. As of August 2024, Beijing had invested in 129 port projects worldwide through various state-owned and private companies. Estimates also indicate that China’s shipbuilding industry is 230 times larger than the total shipyard capacity of the United States. This means it could take Washington years, if not decades, to close the gap.

In response, the U.S. has turned to regulatory tools – raising port fees, imposing sanctions, and tightening access controls. In January 2025, the U.S. Department of Defense added COSCO to its blacklist of companies linked to the Chinese military, signaling that the contest over global port infrastructure is likely to escalate further.

Elefsina as America's answer

At the same time, Washington is working to develop alternatives to Piraeus. The latest initiative involves investment in the construction of a new port in the city of Elefsina. The U.S. International Development Finance Corporation (DFC) has extended a $125 million loan to ONEX Elefsis Shipyards and Industries to take over and modernize the local shipyard. The port is intended to serve as a regional logistics and infrastructure hub. In the future, it is also expected to handle both commercial and military vessels.

However, rising U.S. pressure is not driven solely by security concerns. It reflects a broader competition for influence that has played out between the two powers for years – from the Indo-Pacific and Africa to Europe. The Mediterranean has thus become the latest arena of this rivalry, with Greece positioned at its very center.

Greece as a Bridge State: Balancing between powers

Greece’s geostrategic position between two competing great powers presents not only a challenge, but also a real opportunity for Athens to strengthen its regional role. The Greek government appears to understand this well, approaching its foreign policy in a deliberate and strategic manner.

Greece consistently pursues a multi-vector foreign policy, built on three parallel pillars: the Euro-Atlantic dimension (EU and NATO), its relationship with China under the Belt and Road Initiative (BRI), and Mediterranean partnerships, including cooperation with Israel. This approach enables Athens to maintain flexibility and effectively leverage the advantages of its geographic position.

Greece is also benefiting from the fact that U.S.–China competition in the Mediterranean is drawing significant investment into the country. Athens is not limiting itself to cooperation with a single partner. Instead, it is working to extract benefits from both sides – positioning itself as a bridge state. The advantages of this approach are already visible: port development, job opportunities, and growing logistical importance.

In the long term, this approach could significantly strengthen Greece’s position as a regional maritime power. If Athens stays on its current course, its ports could become one of the most important strategic points on the geopolitical map of the entire region.

Author: Magdalena Ciupińska