Hu's Greek trip focuses on trade

By Malcolm Brabant
BBC News, Athens

China seeks a big investment into Greece's Piraeus port

China's President Hu Jintao is due to begin a three-day state visit to Greece for talks expected to focus on trade.

Greek officials say the visit heralds a new era in increasingly warm relations between the two countries.

Greek entrepreneurs have been urged to use Mr Hu's trip as an opportunity to boost exports to China.

Athens is keen to establish a strategic partnership with Beijing, but dock workers are angry over China's planned investment in the port of Piraeus.

Co-operation between the two nations reached a zenith in the build-up to the Beijing Olympics earlier this year as Greece, the spiritual home of the Games, shared its knowledge and experiences from the Athens Games held in 2004.

The Greeks also improved their stock with Beijing in the spring by efficiently tackling anti-Chinese protests by Tibetan activists.

Piraeus plan

President Hu's arrival has been hailed as an important milestone by Greek Prime Minister Costas Karamanlis.

Greece pleased China when it stopped pro-Tibet protests.

Top of the agenda is trade and in particular the future of Piraeus, Greece's largest commercial port.

President Hu is due to finalise a deal worth an estimated $5.4bn (£3.6bn) which will see China's Ocean Shipping Group (COSCO) taking control of container operations at Piraeus for the next 35 years.

Dockworkers' unions at the state-owned port are opposed to the deal and staged a long strike earlier this year.

But Greek ship owners back the Chinese bid, saying it will help expand the port and turn it into a business hub for the Balkans and beyond.

The Chinese believe Piraeus will be the perfect springboard for their exports to southern Europe.

During the current world financial crisis, there may not be any immediate benefits, but economists say the deal makes sense for China as a long-term strategic investment.