The EU has made Portugal in the crisis years of tough austerity conditions. China has invested a lot during this time in Portugal. Now Portugal’s Prime Minister is not in favour of a harder line by the EU against China.
Portugal’s President Rebelo de Sousa welcomes China’s President Xi Jinping (R) in December 2018, in Lisbon
This is likely to have angered Europe’s leaders: at the Time of the announcement of the Romanian presidency of the EU, the Union will say in the future non-European – Chinese – investment in European key industries more closely monitor cross-shot, António Costa.
The Prime Minister of Portugal, defended the purchasing policy of China, which worries a lot of Europeans so: control is good, should not lead to protectionist measures, explained Costa, the UK’s Financial Times. “Our experience with Chinese investment is very positive. The Chinese show total respect for our laws and the rules of the market.”
Since the economic crisis starting in 2010, Chinese companies have bought heavily in Portugal: the previously state-owned electricity grid operator REN, the largest insurance, largest private hospitals, banks. Critics speak of a closeout.
Chinese control in addition, several small power provider in Portugal. Most recently, she tried to swallow, the biggest electricity company, EDP. The takeover attempt has not succeeded up to now – probably because the USA have expressed concerns. The EDP is also active there.
Chinese banks, the Haitong-Bank, in Lisbon, in the meantime, the city
Trojan Horse?
And so there are growing concerns about whether Portugal is actually on the side of the EU, when it comes to Chinese interests. “António Costa is in the EU, not the Trojan horse of the Chinese. He is your steed,” said Joao Duque, a Professor at the University of Economics in ISEG in Lisbon.
For years, the Portuguese head of government oute again and again as China’s friend and understander. More recently, the Chinese head of state Xi Jinping in a state visit in Portugal (article image) thanked him. The relations of the two countries, which have been in existence for 500 years, has never been better.
China has helped Portugal during the crisis, such as through the purchase of Portuguese government bonds that no one else wanted to. The help there was from the European side, however, Portugal had to meet austerity and reform conditions imposed by the Troika, the triumvirate of the European Central Bank, the EU was called the Commission and the International monetary Fund (IMF).
“The Troika has pushed Portugal to the Chinese, really in the poor”, complains the Portuguese MEP Ana Gomes. She and many colleagues had repeatedly warned of the consequences, in the EU, but referred only to the free play of the markets: “Now you get the receipt,” Gomes dry. It is, as the Prime Minister of Costa, a member of the Socialist party.
Receipt for mistakes of the EU
The course of their Comrade Ana Gomes does not agree with anyway. China is a country that respect the human rights and with the European investment policy objectives to pursue, many companies were state-owned. The should be kept of key European industries, it had nothing to do with protectionism: “that’s Why I need to talk to the Prime Minister, Costa vehemently resisted, if he now takes China to the public. Even if the EU has approved the Action of China up to now, idle.”
Ilídio Serodio of the Portuguese-Chinese chamber of Commerce
Of course the Chinese are big corporations, companies that want to expand their influence in the world, there is Ilídio Serodio of the Portuguese-Chinese chamber of Commerce in Lisbon. They had secured a small EU countries such as Portugal and Greece a major influence in Europe, but at the same time these countries economic advantages. “Portugal can win with a good relationship with China,” says the entrepreneur, however, he also sees in strategic areas of problems.
Impact on small countries strengthen
The people’s Republic of trying for years to take on the Portuguese Azores Islands on foot, I even bought a port next to an American air force base. “The Chinese want to have a own base in the Atlantic, but it is not likely, more likely,” Serodio.
The US is contributing more resistance than Portugal itself – similar to the dispute over the participation of the Telecom-equipment Supplier Huawei in the 5G mobile and wireless technology.
“The Chinese are going to invest without a doubt, more in the small countries of the EU, their impact expand,” believes Serodio. Portugal’s Prime Minister Costa did not know, of course, but at least for the moment as a danger. “Our head of government is very optimistic,” says Serodio.
The Economics Professor João Duque, is of a different opinion: China didn’t buy during the crisis, only massive Portuguese sovereign debt, but the company is a major power acquisitions secured position: “Wherefore, Portugal, may represent no Position, against the Chinese policy of expansion.”
Self-blame?
Economics Professor João Duque
Also Duque refers to the past still holding the EU and its complicity in the development. “First of all, the EU has forced the country to an unprecedented sell-out, now she’s complaining about the consequences.”
Could be, fear Duque, even worse. The world should cool down the economy further and Portugal in trouble again, China could again take the Savior role and more influence back up: “Maybe the public Advocate of the Portuguese Prime Minister is the input for later necessary financial injections,” said the Economist.
Europe have every reason to consider the close relations between Portugal and China is critical. Even if it was the relationship of love is ultimately self-blame.