Italy’s Meloni promises to ‘restart’ cooperation with China – ThePrint – ReutersFeed

By Giselda Vagnoni and Laurie Chen
ROME/BEIJING (Reuters) – Italian Prime Minister Giorgia Meloni promised on Sunday to “restart” cooperation with China, signing a three-year action plan during her first official visit to Beijing since taking office.

Meloni, who has headed a right-wing government since 2022, announced the decision during a meeting with Chinese Premier Li Qiang, as Rome seeks to improve trade ties with Beijing after withdrawing from President Xi Jinping’s flagship Belt and Road infrastructure investment program last year.

The industrial cooperation memorandum signed by Italy and China “covers strategic industrial sectors such as electromobility and renewable energies,” Meloni said later that day.

Meloni, who believes Chinese investment could boost Italy’s anemic economic growth, will meet with Xi Jinping and China’s top lawmaker, Zhao Leji, third in the leadership hierarchy.

She also participated in an Italian-Chinese business forum to which companies such as Italian tire maker Pirelli, energy company ENI, arms company Leonardo, wine producers and several Italian luxury fashion groups such as Dolce & Gabbana were invited.

The forum provides “another signal of mutual interest… (to) more balance our interests, our trade,” she said. Meloni is expected to raise the issue of China’s overcapacity with Chinese officials, as well as China’s economic support for Russia in its war with Ukraine.

“China and Italy should adopt a win-win attitude and enhance trade and investment cooperation, making cooperation even more dynamic and balanced,” Li said at the opening of the forum, according to a video released by Meloni’s office.

“Clearing up misunderstandings”

In 2019, Italy became the only Group of Seven country to join the massive Belt and Road Initiative, but withdrew last year under pressure from the United States amid concerns about Beijing’s economic reach.

Meloni’s government said the deal brought no benefits to Italy, whose trade with China – worth 66.8 billion euros ($80 billion) in 2023 – is heavily tilted in Beijing’s favour. China is Italy’s largest non-EU trading partner after the U.S.

Chinese state media said the purpose of the trip was to “clarify some misunderstandings” over Italy’s withdrawal from the Belt and Road Initiative and to highlight the importance of economic ties.

The Italian government is in talks with Chinese carmakers as part of a bid to attract another major manufacturer to the country alongside Stellantis.

Speaking at the Business Forum, Meloni said the memorandum of understanding on industrial cooperation signed by Italy and China “covers strategic industrial sectors such as electromobility and renewable energy” and called on Beijing to share “new frontiers of knowledge with its partners.”

Total Italian foreign direct investment in China amounts to €15 billion ($16 billion), and more than 1,600 Italian companies operate there, mainly in textiles, mechanical engineering, pharmaceuticals, energy and heavy industry.

However, Italy has backed the European Commission’s decision to impose temporary tariffs of up to 37.6% on electric vehicles imported from China. Beijing has responded angrily, launching retaliatory investigations into European brandy and pork.

G7 member states, including Italy, pledged last month to continue protecting their businesses from what they say are unfair trade practices by China.

(Reporting by Giselda Vagnoni in Rome and Laurie Chen in Beijing; Editing by Philippa Fletcher, William Mallard and Giles Elgood)

Disclaimer: This report is generated automatically by Reuters news service. ThePrint is not responsible for its content.