Chinese outward FDI in the terminal concession of the port of Piraeus

Business literature has broadly identified four main perspectives in motivating and affecting Chinese outward foreign direct investment (OFDI). In particular (a) the latecomer perspective, (b) the Chinese state and government influence perspective, (c) the liability of foreignness and (d) the dynamics of firms and institutions perspective. In this paper, we focus on the concession of the container terminal of Pier II of the port of Piraeus as a case study of Chinese OFDI. Our analysis indicates that in the concession of the port of Piraeus, most of the drivers of Chinese OFDI are present. We support the view that the process was necessitated by the “latecomer” disadvantage of the Chinese shipping companies but was primarily driven by the influence of the Chinese and Greek State. In the case of the concession of the Piraeus container terminal, the governmental influences on the process affected the longevity and application of the contractual arrangement and included political deals alongside the business one.