US eyes defence-focused shipbuilding alliance with Greece, South Korea

A trilateral shipbuilding agreement between the United States, South Korea and Greece is expected in the near future, US Ambassador to Athens Kimberly Guilfoyle announced, underscoring Washington’s growing engagement in the eastern Mediterranean, Euractiv reports.

“We will have a trilateral shipbuilding agreement with South Korea, Greece and the United States. That is the President’s [Donald Trump] priority – to make agreements with allies that we respect and will protect,” Guilfoyle said.

The initiative will initially focus on the defence industry. A recent letter from Trump to Greece’s newly appointed ambassador to Washington indicates that discussions are underway to construct American frigates in Greek shipyards.

The Trump administration has demonstrated strong interest in deepening cooperation with Greece in both energy and defence. The United States maintains a key military base on the island of Crete, a strategic location that enables Washington to project power across the Middle East and North Africa.

The proposed agreement comes as the US shipbuilding sector faces mounting challenges. A Maritime Action Plan published by the White House on 13 February acknowledged that the American shipbuilding industry “has been in decline for some time and needs revitalisation,” even as China has made significant advances in the field.

Guilfoyle also addressed China’s economic footprint in Greece, particularly investments by Chinese shipping giant COSCO Shipping in the port of Piraeus. She said that, if necessary, she would “aggressively push back against Chinese interests.”

The ambassador noted that Chinese investors entered Greece during a period of severe financial crisis, when Athens had limited options and China was the sole bidder for key assets. She suggested that the episode offers a broader lesson for Europe.

Greek authorities have stated that they cannot alter the long-term contract with COSCO governing operations at Piraeus. Guilfoyle argued that the only effective way to counterbalance Chinese influence in the port would be to develop another port as a strategic alternative.

At the European level, the European Commission is expected to unveil a new Port Strategy in the coming weeks, addressing issues related to foreign investment and strategic infrastructure.

For now, however, Brussels appears less alarmed about China’s presence in European ports. Asked about foreign shareholders such as China in sensitive infrastructure — including ports like Hamburg and Piraeus — EU Transport Commissioner Apostolos Tzitzikostas downplayed concerns.

“No, I wouldn’t say there is a security issue,” he told Euractiv in an interview.

By Vafa Guliyeva