China with its $2 Trillion Foreign Exchange Reserves is on the constant lookout for cheap assets around the world.With its massive horde of Dollars and Euros depreciating on a daily basis,the Chinese government is investing in Hard Assets in places like Africa,Venezuela etc.  who are  in desperate need of capital.It seems that China has found another “distressed asset” in desperate need of its capital  – Greece.The Greek government groaning under a massive debt load of more than 100% of its GDP,High Fiscal Deficit and Low Growth finds itself in a tight corner with its bonds downgraded to junk status .Foreign investors have abandoned the country with the only the European Union and ECB support preventing an outright Greek sovereign default.With private investors leery of investing in such an environment,China is an appealing prospect for the Greek authorities.China has signed agreements to invest in the country’s telecom,agriculture and shipping sectors through its quasi private/government companies like Cosco and Huawei.

Greece signs commercial agreements with China – Sify

Greek and Chinese companies signed 14 commercial deals, including for the construction of cargo ships and the export of olive oil, during a visit by Chinese Vice-Premier Zhang Dejiang, officials said Tuesday.Debt-plagued Greece has been seeking to boost investments from China, and Chinese shipping and transport giant Cosco Group has said it is looking to expand its Greek operations. The company already operates two container terminals at Greece’s largest port of Piraeus, on a 35-year concession worth $1 billion that was finalized last year.

Zhang, who arrived in Athens Monday on a four-day visit, met with Greek Deputy Prime Minister Theodore Pangalos and was to meet later with Prime Minister George Papandreou. He is to fly to the island of Crete later in the week.