Italian Prime Minister Giorgia Meloni announced a renewed commitment to cooperation with China during her first official visit to Beijing since taking office. On Sunday, Meloni signed a three-year action plan aimed at strengthening bilateral relations and exploring new forms of collaboration.
Strengthening Bilateral Relations
Meloni, who has led a right-wing government since 2022, met with Chinese Premier Li Qiang, marking a significant step towards improving trade ties with China. This visit comes after Italy’s exit from President Xi Jinping’s Belt and Road Initiative (BRI) last year.
“The action plan aims to experiment with new forms of cooperation,” Meloni stated, emphasising the intention to “relaunch our bilateral cooperation.”
An industrial cooperation memorandum signed by Italy and China covers strategic sectors such as electric mobility and renewables. Premier Li Qiang highlighted the potential for “mutually beneficial cooperation between small and medium-sized enterprises in shipbuilding, aerospace, new energy, and artificial intelligence.”
Meloni views Chinese investment as a crucial driver for Italy’s sluggish economic growth. During her five-day trip, she will also meet with President Xi Jinping and top legislator Zhao Leji.
Italy-China Business Forum
Meloni attended the Italy-China business forum, which included representatives from major Italian companies such as Pirelli, ENI, Leonardo, and several luxury fashion brands like Dolce & Gabbana.
She stressed the importance of balancing commercial exchange and addressing issues like Chinese overcapacity and economic support for Russia in its war with Ukraine.
“China and Italy should adopt a win-win mentality and increase trade and investment cooperation,” Li Qiang said at the forum’s opening, according to a video shared by Meloni’s office.
Clarifying Misunderstandings
In 2019, Italy became the only G7 country to join the BRI but withdrew last year under U.S. pressure over concerns about Beijing’s economic influence.
Meloni’s government stated that the BRI had brought no significant benefits to Italy, whose trade with China was heavily tilted in Beijing’s favour.
Chinese state media reported that Meloni’s visit aimed to “clarify some misunderstandings” about Italy’s withdrawal from the BRI and to emphasise the importance of economic ties.
Future Prospects
Italy is engaging in talks with Chinese automakers to attract another major manufacturer to the country, in addition to Stellantis.
Meloni highlighted the importance of industrial cooperation in sectors like electric mobility and renewables and called on Beijing to share “the new frontiers of knowledge with its partners.”
Other agreements focused on protecting geographical indications, food safety, the environment, and education.
Trade Relations and Challenges
Italy’s foreign direct investment in China totals 15 billion euros, with over 1,600 Italian companies active, particularly in textiles, mechanical engineering, pharmaceuticals, energy, and heavy industries.
However, Italy recently supported the European Commission’s decision to impose provisional tariffs of up to 37.6% on electric vehicles imported from China. In response, Beijing launched retaliatory investigations into European brandy and pork.
Last month, G7 members, including Italy, pledged to protect their businesses from what they consider unfair Chinese trade practices.
With Inputs from Reuters
