Italian Prime Minister Giorgia Meloni will visit China from July 26-31, marking her first trip there since taking office. The visit aims to enhance trade relations between Italy and China, according to sources involved in the planning.
Strengthening Trade Ties
Meloni views Chinese investment as a potential catalyst for Italy’s sluggish economic growth. She is expected to meet with Chinese President Xi Jinping and Premier Li Qiang during her visit. This trip underscores the importance of improving economic ties between the two nations.
Italy-China Business Forum
An Italy-China Business Forum is scheduled in Beijing on Sunday and Monday during Meloni’s visit. Key Italian companies, including tyre-maker Pirelli, energy group ENI, defence group Leonardo, wine producers, and luxury fashion brands like Dolce & Gabbana, are invited. This forum aims to foster business relationships and explore new opportunities for collaboration.
Historical Context and Trade Agreements
In 2019, Italy became the only G7 country to join China’s Belt and Road Initiative (BRI), a global trade and infrastructure project. However, Italy withdrew from the BRI last year under U.S. pressure, citing concerns over Beijing’s economic influence. The Italian government stated that the BRI deal had not yielded significant benefits for Italy, whose annual trade with China stands at 73.9 billion euros ($80.13 billion), heavily favouring China.
During Meloni’s trip, several bilateral trade and industrial agreements are expected to be signed, although specific details have not been disclosed. One of the panels at the business forum will focus on the automotive sector, with the Italian government engaging Chinese automakers to attract another major automaker to Italy alongside Stellantis. This move aims to boost national car production.
Areas of Cooperation and Concerns
China’s industry ministry expressed willingness earlier this month to promote practical cooperation with Italy in sectors such as automobiles, ships, and small- and medium-sized enterprises. This cooperation could lead to significant advancements in these industries for both nations.
Meloni is also expected to address issues of overcapacity in Chinese production and China’s support for Russia in the ongoing war with Ukraine. These topics are critical for maintaining balanced trade relations and addressing broader geopolitical concerns.
G7 Stance on China
At a recent G7 meeting in Borgo Egnazia, Italy, member countries, including the United States, Britain, France, Germany, Japan, and Canada, affirmed that they do not intend to harm China or impede its economic development. However, they committed to protecting their businesses from unfair practices. This balanced approach highlights the complexity of international trade relations and the need for fair practices.
With Inputs from Reuters
