China raises investment in debt-laden Greece

China today signed 14 commercial deals to invest in Greece during a state visit by vice-premier Zhang Dejiang.

The Greek government has been seeking to increase the flow of Chinese funds to the country as it tries to fight off crippling debt.

The agreements signed today include three between shipping companies and Chinese transport giant Cosco Group for the construction of seven dry bulk cargo ships, with options for four more and the chartering of another five.

The company already operates two container terminals at Greece's largest port of Piraeus, on a 35-year concession worth $1 billion that was finalised last year. Shipping is one of the country's main industries, with Greeks controlling nearly 20% of the world's merchant fleet.

Telecoms company OTE also signed an agreement with China's Huawei Technologies, while food companies signed four agreements for the export of Greek olive oil.

No figures were immediately available as to how much the deals were worth, but early reports put the value at more than 1 billion.

Zhang, who arrived in Athens yesterday for a four-day visit, met Greek Prime Minister George Papandreou and deputy Theodore Pangalos. "The Chinese government will encourage Chinese businesses to come to Greece to seek investment opportunities," he said during a deal-signing ceremony. "I am convinced that Greece can overcome its current economic difficulties."

Papandreou said relations between the two countries were "excellent" on a commercial and a political level.

The European Union and the International Monetary Fund have given Greece a 110 billion bailout package over three years to tackle its fiscal crisis.