On Thursday the Financial Times reported that Italy is planning to hold meetings with China regarding pulling out of China’s “Belt and Road Initiative” (BRI) infrastructure and investment program, according to government officials.
In 2019, Italy was the only G7 nation to join the initiative, igniting backlash from the US and the EU.
Under the previous agreement, Italy’s continued participation would be automatically renewed in 2024, unless the government actively withdraws from the agreement.
An Italian official said, “We want to maintain good relations with them [China] and work to avoid problems from escalating,” noting that Rome did not want to “antagonize” China.
As have many EU members, Italy has found itself caught between a close trade relationship with Beijing, and the rising tensions between the United States and China.
Stefano Stefanini, Italy’s former ambassador to NATO, said, “Given the state of relations between the US and China, we cannot remain an ally of the US and at the same time remain in the BRI. We have to try to negotiate a peaceful — or [the] least damaging possible — exit with the Chinese.”
Last month Bloomberg reported that Italian Prime Minister Giorgia Meloni was seeking to make a statement on Italy’s participation in the BRI prior to the G7 summit in May. However at the time it was reported she was still unsure whether Italy should remain in the pact or not.
Earlier this week reports emerged that the Italian premier had told US House Speaker Kevin McCarthy that Italy was going to be seeking an exit.
Italy’s business community, already suffering under economic disruptions from the West’s sanctions on Russia, has been upset by the move, especially occurring just as the Chinese market is undergoing its full reopening following the end of all Covid restrictions imposed on the populace. Italian businesses worry they will miss out on significant prospects for profit, given Italian exports to China surged 92.5% year over year in the first quarter of 2023.
Mario Boselli, president of the Italy China Council Foundation, said, “A possible withdrawal would lead to a cooling of bilateral relations at a historic moment in which companies and professionals are experiencing a frenzy and a desire to return to the Chinese market.”
Unveiled in 2013 by President Xi Jinping, the Belt and Road Initiative was intended to be a network of seaports, railways, roads, and industrial parks designed to facilitate trade with Beijing. It is expected to enhance connectivity and cooperation between China and over 80 countries throughout the world.
The project’s main goal is stated as promoting peace through trade and development.
