Greek PM in China touts country as European 'gateway'

China's President Xi Jinping shakes hands with Greece's Prime Minister Antonis Samaras (L) during a meeting at the Great Hall of the People in Beijing. (AFP/Jason Lee)

BEIJING - Greek Prime Minister Antonis Samaras on Friday touted his troubled but improving economy as an attractive entry point for Chinese investment into the European Union.

"Greece can become a real 'gateway' for investment and trade flows between China and Europe," Samaris told a Greek-Chinese business forum, according to a copy of his speech text.

Samaris is visiting China, the world's second-largest economy, in a bid to strengthen economic ties. He met Chinese President Xi Jinping on Friday after holding talks with Premier Li Keqiang the day before.

Samaris acknowledged that Greece is in recession, but said that the country has overcome excessive debt and low competitiveness.

"We achieved fiscal consolidation and we have moved forward with structural reforms that are changing, totally changing our economy," he said.

Samaris added that a full recapitalisation of the country's banking system was on the verge of completion.

He said "currency risk scenarios" -- an apparent reference to the possibility of giving up the euro -- "are now dead" and that investors can rest assured.

"Greece is anchored in the eurozone," he said. "This is now unquestionable."

Samaris also welcomed the signing of business agreements Thursday, including one by the China Development Bank with Greece's privatisation agency and the "Invest in Greece" agency.

Greece's economy shrank 6.4 percent in 2012 and has contracted by more than a fifth since 2008 amid the country's debt crisis.

The government, however, is forecasting a smaller contraction of 4.3 percent this year before the economy returns to growth in 2014.

China's Xi told Samaris at their meeting that China supports European integration and is prepared to work with Greece -- which will hold the rotating EU presidency in 2014 -- to push forward China-Europe relations, the state-run Xinhua news agency reported.

"(We) look forward to closer cooperation between the two sides on trade, shipping, culture and tourism," Xi said, according to Xinhua. He also said his government encourages investment in Greece by Chinese enterprises.

Greek news agency ANA reported Friday, citing a joint statement issued at the end of Samaris' official meetings, that Athens welcomes Chinese participation in privatisation efforts.

"Greece welcomes and salutes the participation of Chinese enterprises in the Greek government's privatisation programme and declares its intention to offer the necessary facilitations and its support," the statement said.