Main points:
On Greek-Chinese relations following the recent meetings between Greek Prime Minister Kyriakos Mitsotakis and Chinese President Xi Jinping
“It was a double trip and a double opportunity to strengthen our relations. On a political, economic, but also business level. In the last four months, we, both at the Ministry of Foreign Affairs and at Enterprise Greece, worked hard to prepare a successful, I believe, mission to China. On a political level, our relations could not have been any better. They are better than ever. This is also proven by the fact that a few days after our visit to Shanghai, the Chinese President visited Athens on an official capacity. We met him twice in Shanghai.
We were lucky to be accompanied by a large business delegation consisting of 65 Greek businesses. Some 315 meetings took place with 125 Chinese businesses, so I believe the Greek entrepreneurial community must be pleased. On an economic level, we built a new direct air connection between Athens and Shanghai, which will start operating in May 2020. In the next few days, two Chinese banks will open branches in Greece. These are the Bank of China, which is the fourth largest bank in the world, and ICBS, which is the largest bank in the world. There is interest from very large Chinese companies that want to invest in Greece, such as Alibaba, the major tech company, which can help us both in selling Greek products and in bringing tourists to Greece. We inaugurated an amazing Greek booth, where we showcased our culture, arts, entrepreneurship, music, dancing, Greek food and wines, and Greek products. There was also a second trade booth, where Greek businesses exhibited their products. We were the honoured country, attracting the attention of the entire Chinese side and the Chinese visitors. This visit had a very positive aura.”
On what Greek entrepreneurship and the domestic economy can expect overall from the excellent Greek-Chinese relations
“What we can expect is what we have been doing in terms of Economic Diplomacy and Openness at the Ministry of Foreign Affairs; supporting Greek businesses so that they may become international by expanding their activities abroad, and attracting foreign investments to Greece. With regard to the first part, the Expo, the 315 meetings and the conditions we are creating to give Greek exporters the chance to export their product to the huge Chinese market are what’s most important.”
On attracting foreign investments
“The climate for Greece is very positive at the moment, and not just within the Chinese market. It is telling that as soon as the meetings were concluded in China, 10 of the 100 largest Chinese companies asked to meet with me. Because there was no time, we met all of them together to talk about the opportunities available in the Greek market for investments.”
On Greece's image abroad during the years of the crisis and what has since changed to attract investments
“We have to look at the criteria a foreign business looks at before choosing to invest in a country. Most believe that the main thing are low taxes. I’m not saying that it’s not important, but it’s not number one. The main thing is that there is a market for the company’s products and services. The second thing is what our government has accomplished; political stability, economic growth and social cohesion. No one wants to invest somewhere where they are not welcome. Society must show that they welcome a foreign investment; that there is interest in the jobs it will be creating. It is obvious that our country has been experiencing economic growth in the last few months. The interest rate for our 12-month bond dropped to 1.37, while it was negative for the quarter. The financial markets are ahead of what’s coming. There’s a positive climate; a fair wind. When there’s a market for products and services, political stability and economic growth, social cohesion and institutions that operate, then all the incentives one can institute are more of an aid and work positively.
On the extent to which the image and condition of an economy attracts investments
“Image is very important. It is hard for a small entrepreneur who tries to do business with a large company that wants to import the latter’s products to a major market in Europe or the USA to carry the image foreign entrepreneurs have about Greece. This image is usually linked to the beauty of our country, our history and our culture. But there’s also another image, that of unemployment, lack of credibility and crisis. This is what we want to change. So, with Prime Minister Kyriakos Mitsotakis being an avid supporter of the idea, we’ve set up a working group called “Reposition in Greece”. The central theme is to create an image of a contemporary Greece, which brings along all the values of the past, but is also related to its current status. Meaning, high tech, sciences, contemporary awards in the area of sciences and the academic community. We want to create the status of the new Greece. And we are not thinking in terms of 2019, but in terms of 2030. Each body, public or private, must carry a piece of that image. And all these together make up the image of contemporary Greece. The new architecture of the image of Greece. We are not denying anything from our past, but Greece is not just that. Greece is what we are aspiring to become in the modern era. The great change and the transformation in economic diplomacy is that we are incorporating all bodies under one roof. We are incorporating Enterprise Greece, the Export Credit Insurance Organization and economic diplomacy, whether this is from the Ministry of Foreign Affairs or from the Ministry of Development, the OECD, under the Ministry of Foreign Affairs.
We are doing this so that we can have a single, loud voice against all bodies and stakeholders. Enterprise Greece is the main tool through which small and medium-sized businesses of Greece can gain access to foreign markets. We are open to helping everyone, big or small. We are able to support Greek exporters in any way they want. From training seminars to simple day-to-day support in the steps they need to make through our people around the world, so as to get close to buyers and businesses abroad that may be interested in their products. Enterprise Greece carries out two things: supports exports using various tools. Expos and business delegations are just one tool. We want to conclude a large website, where each entrepreneur, big or small, will be able to find any information they want about their product, the market they are targeting and how to strongly penetrate that market.”
On which markets are open to Greek products
“There is major interest in Greece from US companies, but also from central European businesses. The fair wind I spoke about is blowing all over. Everyone is interested in coming to Greece, more so the Chinese. There’s also the same interest from the markets of Japan and SE Asia. There is interest from investors to come to Greece. There is a large volume of Greek products that could make a career abroad, such as feta cheese, olive oil, honey, agri-food products and also modern technology products. I can assure the Greek business community that we can help and support their products in every special market they are targeting.”
On Greek exports
“All of us are the state. We have to create the conditions so that a producer from Crete is able to send their product to Norway. Naturally, they too must have the vision and willingness, make the effort, take the risk, approach us, so that we can bring them into contact with the right people. We need to have the whole marketing package. Meaning, the right product, the right price, a way to market it and a way to communicate this.”
On what damaged Greece’s reputation in the last years
“The economic conditions played a decisive role. The country lost 32% of its GDP, it was something like a war. Consumption dropped, half the shops were empty, businesses were closing down, foreign entrepreneurs had no confidence in coming and putting money into the country and Greeks had no financing opportunities. It never rains but it pours. It is a chain reaction. The exact opposite is happening now. I’m not talking in terms of politics, but in terms of economics. There is confidence in the government, the economy and the society. It is the right time for the Greeks to spread their wings and head abroad and for businesses to come to Greece.”
On the sectors that could attract FDI to Greece and on what is stopping foreign investors from placing large capital in Greece.
“Nothing is stopping foreign investors. Hellinikon is going ahead. Cosco is an iconic project and more will come. Large investments do not happen right away. Time, research, decisions and negotiations are needed for a deal to close. These take time. Major projects do not happen from one moment to the next. When there’s political stability, economic growth and social cohesion, I don’t understand why we could not have major investments in Greece. This government tangibly demonstrated that it can combat bureaucracy. Our aim is to boost manufacturing. It is the core of a country’s growth. It is something we are aspiring for and will try to accomplish.”
On what exactly is happening with economic diplomacy
“Economic diplomacy is about how you can use diplomacy to obtain a good economic result for the country. We use all our skills to achieve a good result for the country’s economy. A typical example is what happened with olive oil and olives about a month and a half ago. The USA imposed import tariffs on a series of food from the European market, including olive oil and olives, exempting Greece from the tariffs. This was not random. A systematic effort was made both by the Ministry of Foreign Affairs, meaning Minister Dendias, Mr Voridis and me, and by the Prime Minister himself, with interventions towards the USA, which resulted in us being exempted from the import tariffs. And this involves many millions of euros from hundreds of small producers across Greece. This is the good face of economic diplomacy.”
November 21, 2019