China, Greece, and Economic Relations in Southeast Europe: A Political Economy Approach

Abstract

This paper investigates China’s regional role in Southeastern Europe by examining the economic strategy of neo-mercantilism using Greece as a case study. In doing so, this paper will make use of the strategy of neo-mercantilism as part of the broader theory of regional powers pursuing broader geostrategic goals. How has the strategic partnership between China and Greece evolved in recent years, and what are China’s primary objectives in Greece under the neo-mercantilism? China has intentionally sought to expand its influence in Southeastern Europe by cultivating a strategic partnership with Greece, while avoiding challenging the influence of other powers in the area. The economic turmoil in Greece over the past decade created a favorable environment for attracting Chinese FDI. China’s principal focus in developing its strategic partnership with Greece is to increase FDI as a means of achieving its economic goals and other political goals with tangible results related to China’s support in issues mainly concerning the country’s applied foreign policy.