Why Europe will have to face the true cost of being in debt to China

Billions of dollars of Chinese money are boosting some European economies, but some of the deals being struck have a catch. Critics say they are debt traps where China can decide what happens if loans aren't repaid.

China insists it is a reliable investment partner, but it is also facing allegations of worker exploitation and environmental damage.

There is a moment where a disaster is about to happen. A dock worker walks along the quayside next to a huge stack of shipping containers at the Greek port of Piraeus.

He looked up to see one of them plummet towards him. The docker narrowly escaped being crushed by the two huge boxes, which instead hit an empty truck.

A worker in Piraeus was not so lucky. The man was killed in a crane accident.

The chairman of the trade union in the port says that the death was a result of the work being intensified and the lack of safety measures in place.

The port is two-thirds owned by Cosco, a Chinese state company.

As governments worry about the invasion of Ukraine by Russia, Beijing is expanding its portfolio. Investing where others won't is what running European ports and mines is all about.

The rewards and risks of signing deals with China are being weighed by countries. The Chinese state can extract economic or political concessions if the country receiving investment cannot repay.

There are claims of workers being exploited by Chinese firms. We asked Cosco questions about the death of Dimitris Dagklis, staffing levels at Piraeus and environmental concerns about port expansion. The company wouldn't give us an interview and couldn't help us further.

Bekris does not blame Beijing solely for the erosion of employment rights. The post-global financial crisis capitalist system would allow foreign companies to maximize profit at the expense of workers, according to him.

Since the Greek government was forced to sell it and other public assets in the aftermath of the economic turmoil that hit in 2008, Beijing investment has powered a renaissance at the port.

As we travel along the coast in a small motorboat, we see a queue of enormous container ships lined up on the horizon waiting for berths, filled with hundreds of thousands of tonnes of mostly Chinese-made goods to be distributed to all corners of Europe.

The boom at Piraeus is a reflection of Greece's financial fortunes. One of the fastest growing EU economies is it.

Like all of its European neighbours, it is scrambling to cope with the impact of the Ukraine war. The world is rethinking what it means to do business with Beijing, which in February declared a new global order with its ally Moscow.

On the opening day of the Winter Olympics, China declared a partnership with Russia and promised to work against the West. China has failed to condemn the assault on Ukraine by President Putin.

Local people are taking legal action against the Chinese owners of the port for alleged environmental damage. There are concerns about the dredged sea bed and toxic pollution, as well as the increase in traffic on both land and sea.

Lawyer Anthi Giannoulou was a child when she played on the rocky coastline.

It won't benefit Piraeus. It will benefit people who don't live here.

The people who still live here have been here for many generations. We can't be driven out by investment without being asked about it.

In the lobby of a government building in central Athens, we are greeted by Greece's foreign minister. He says that China was the only investor who came forward at the time the Greek government was forced to sell the port.

Both parties benefit from our economic relations. China has an entry point for its products in the European Union, the Balkans, and central and eastern Europe. There is a big commercial port up-to-date.

The European Commission, European Central Bank and the International Monetary Fund were adamant that the port be sold to help service Greece's debts.

The truth is that China took over the port of Piraeus and now it is one of the biggest ports in Europe, and I have no reason to doubt it. That is a huge improvement and the investment is substantial.

What about potential debt traps that might come with any future Chinese investment in Greece? Is the high point of Athens relations with Beijing? The minister admits that his government has not signed any more big deals, but suggests that it will judge future opportunities on a case by case basis.

There isn't any more substantial Chinese investment in Greece, but we judge the investment on commercial grounds. If the Chinese want to invest, we are a free country and a free economy.

Greece is not the only part of Europe where Beijing is investing.

You would be forgiven for thinking you had been transported to a Chinese province if you stood on the hillside overlooking the Serbian city of Bor. The flags are red and the admin offices look like temples.

China is pouring money into the copper mine. The water of some nearby lakes has been stained with metal.

It is a metaphor for how the red of the Chinese Communist Party is leaving its mark across this continent.

In Europe, but not in the EU, Serbia does not have the same level of workers rights as other European countries.

We met a 35-year-old man in the shadows of a building in the city of Zrenjanin, north of the capital Belgrade.

The Chinese company treats us badly. The father of three told us in a quiet voice that they don't respect him.

He said that he had been paid the equivalent of 1,200 to come to Serbia for a construction job. He regretted it soon.

They forced us to work more, but they didn't have enough supplies. I got twice as much food when I first arrived.

The Chinese employees at the same site were paid more than the 400 or so Vietnamese workers.

There are at least 20 or 30 workers living in each container. They treat us like slaves.

He tried to leave his job after five months, but was told there was no chance of a flight back to Vietnam. He was stranded thousands of miles from home.

We've heard that Dung took out a loan to get back to his family.

Some charities are alarmed by poor conditions and contracts that workers are asked to sign.

Employment documents in Serbia seem to have been copied and pasted from those used for foreign workers in countries with the death penalty.

When they realized what was happening at the Ling Long tyre factory, they were shocked.

The most visible case of human trafficking and labour exploitation we have had so far is this one. As Chinese businesses expand across Europe, he says the factory incident serves as a warning.

If you don't have institutions that are strong enough to prevent human rights violations or labour standards violations, you will have a race to the bottom with other companies.

Local media in Serbia reported that the Ling Long factory was committed to high standards of worker welfare, despite not responding to the allegations made by Dung and others.

The Serbian government and the president of Serbia argue that investment from China has helped the Serbian economy.

The treatment of Uyghur Muslims at home in Uyghur province echoes the alleged human rights violations in Europe by China.

There are other reasons to be cautious.

Richard Moore, the head of the UK's foreign spy agency MI6, has warned about data traps and debt traps. He said last year that China had the ability to harvest data from around the world and use it to get people on the hook.

China does not accept such accusations.

The British have banned the Chinese company from their 5G infrastructure. The company is under scrutiny over its security practices and its links to the Chinese government.

The company has been hit with sanctions.

Some of the security cameras that have been installed in the streets of Belgrade. The Serbian government says face-recognition capabilities won't be introduced any time soon, despite concerns from human rights groups.

Critics of Beijing point to another debt trap in Europe. It is not in the same league as Serbia in terms of EU rules and regulations.

The only motorway in the country is a strange experience. There is a road to ourselves, apart from a herd of sheep on the central reservation.

The idea was to link the port of Bar on the Adriatic Sea in the south to the border with Serbia in the north to boost trade. It would be too complex and expensive.

China needs $1 billion to move forward. A loan to be repaid is not a gift.

It is one of the most expensive motorway in the world, as only about 25 miles of it have been built.

We reached the end of the road after crossing over bridges and tunnels carved out of the countryside. The project is two years late because of allegations of corruption and kickbacks. Some wonder if it will ever be finished.

The terms of the deal with China state that if Montenegro fails to repay loan instalments, any decision on what damages might be owed will be made in Beijing. The port of Bar could be seized by China.

The Montenegrin government minister who took this poisoned chalice was 34 years old. When we met over Zoom, he was bright and cheerful and explained how he had secured a repayment arrangement so the motorway wouldn't bankrupt his country.

For him, the position of Montenegro is indicative of many smaller countries looking for funding to start infrastructure projects and boost their economies.

We need to invest. If the Chinese are the only ones interested in investing in you, you should be careful about the terms of the investments and make sure everything is in line with your general policies.

Spaji lost his job when a new minority government was formed. Getting the rest of the motorway built will be an issue for his successor.

There is one project that some hold up as an example of good construction practices and effective cooperation between the East and West. It is on the Adriatic coast in Croatia.

Although it is a Sunday when we visit, work on the Pelje bridge is in full swing, with beams being lowered and drilled into position.

This is the biggest infrastructure project in Croatia and will join the Pelje peninsula with the Croatian mainland. To reach the mainland, Croatians have to travel along the coast of Bosnia.

Most of the bill for the new bridge has been paid for by the EU, but it was built by Beijing. The army of workers are all Chinese.

This project is not without controversy.

The China Road and Bridge Corporation tender was 20% cheaper than its nearest competitor. European rivals called the deal a violation.

The Pelje bridge is an example of how European countries can find a balance between East and West and not hurt the US.

If we exclude critical technologies, I don't think there is a problem in satisfying both the EU, Nato, US and China.

The Biden White House has not softened its stance on Beijing in the wake of the trade war with the Trump administration.

We wanted to speak to a top Chinese diplomat to find out more about Beijing's plans for Europe. None of the Chinese ambassadors were available.

Whether inside the EU, like Greece and Croatia, or on its periphery, like Serbia and Montenegro, European nations will have to weigh up the pros and cons of Chinese deals on a case by case basis.

The fact that Putin is the man who has caused the biggest security crisis in Europe since World War Two is a factor that will overshadow every decision taken.

Additional reporting by Kostas Kallergis.