Italy, China sign 3-year action plan as Meloni tries to reset relations

BEIJING, China: Italian Prime Minister Giorgia Meloni said in the Chinese capital that her country had signed a three-year action plan with China that aims to implement previous agreements and test new forms of cooperation.

Meloni is seeking to rebuild ties with China as fears of a trade war with the European Union are linked to interest in attracting Chinese investment in the auto industry and other sectors.

Her five-day visit comes months after Italy withdrew from China’s Belt and Road Initiative, a flagship policy of Chinese leader Xi Jinping.

Still, Italy wants to continue its strong economic ties with China. Stellantis, a major carmaker that owns Italy’s Fiat, announced in May that it had formed a joint venture with Leapmotor, a Chinese electric car startup, to start selling electric vehicles in Europe.

Addressing Italian and Chinese business leaders after meeting with Meloni, Li said China’s drive to modernize its economy would boost demand for high-quality products, expanding opportunities for cooperation between companies in the two countries.

He pledged to further open Chinese markets, ensure foreign companies are treated the same as Chinese ones and create a transparent and predictable business environment. He was responding to common complaints from companies operating in the world’s second-largest economy.

Meloni informed business leaders that the two sides had signed a memorandum of understanding on industrial cooperation that includes electric vehicles and renewable energy.

Electric vehicles have also led to increased trade tensions between China and the EU, with the EU in early July imposing temporary tariffs of up to 37.6 percent on Chinese-made electric vehicles. Both sides want to resolve the issue by early November.

Meanwhile, China has launched an anti-dumping investigation into European pork exports, just days after the EU announced it would impose tariffs on Chinese electric vehicles.

Meloni, who arrived in Beijing on July 27, is making her first trip to China as prime minister. She spoke with Li in New Delhi last September during the annual G-20 summit.