The US Department of Defense has blacklisted Cosco, the Chinese firm managing Greece’s largest port, Piraeus, over alleged links to China’s military.
While the move does not carry legal sanctions, it has raised concerns in Greece, where Piraeus plays a pivotal role in the economy as a hub for cruise and cargo ships.
The Greek government is evaluating the potential impact, according to Reuters, as the country balances its close ties with the US, including military cooperation agreements, against its economic reliance on Piraeus.
Cosco, one of the world’s largest shipping companies, has denied the allegations, stating its operations remain unaffected and that it will seek clarification from U.S. authorities.
The Chinese company has underscored that the organization and all of its subsidiaries have “consistently adhered” to local laws and regulations, ensuring they maintained ‘strict’ compliance in all international operations and that the allegations against it were “unfounded”.
“We emphasize that none of the aforementioned companies are ‘Chinese military companies’. We will engage with U.S. authorities to clarify this matter. This designation does not impose sanctions or export controls, and our global operations will continue uninterrupted,” company representatives highlighted.
Cosco has been placed on the sanctions list, together with 130 other Chinese companies, for their alleged ties to the country’s military.
US describes Cosco as “Chinese military company”
The primary objective of this list, which now comprises a total of 134 companies, is to restrict the entities’ economic and technological interactions with the US and curb China’s military modernization efforts.
Cosco Shipping and its subsidiaries Cosco Shipping (North America) and Cosco Shipping Finance were disclosed in a Federal Register filing on January 7, 2025, where they were described as “Chinese military companies” providing commercial services or goods to support the People’s Liberation Army or related organizations.
Other ‘major’ players on the list include China Shipbuilding Trading (CSTC), China National Offshore Oil Corporation (CNOOC), and China International Marine Containers Group (CIMC). Companies within the energy transition space were named, too, such as battery manufacturer Contemporary Amperex Technology (CATL) and technology company Tencent Holdings.
As disclosed, while being blacklisted does not entail specific penalties, it could discourage American companies from dealing with the sanctioned businesses.
Cosco and the Port Piraeus in Greece
Cosco holds a 67 percent stake in the Piraeus Port Authority (PPA), the entity responsible for operating Greece’s Port of Piraeus. This ownership was solidified in October 2021 when Cosco acquired an additional 16 percent share, increasing its stake from 51 percent to 67 percent.
The significance of Cosco’s investment is substantial for both Greece and China. For Greece, the partnership has revitalized the Port of Piraeus, enhancing its status as a major maritime hub in the Mediterranean.
Since Cosco’s involvement, the port has experienced increased container handling capacity and improved infrastructure, contributing positively to the Greek economy through job creation and increased trade activity.
Related: China’s COSCO Plans to Make Piraeus the Largest Port in Europe
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