Italy and China have signed a three-year action plan to implement past agreements and explore new avenues of cooperation, Italian Prime Minister Giorgia Meloni announced during her official visit to the Chinese capital.
Meloni’s visit aims to reset relations with China amidst concerns about a trade war with the European Union, while simultaneously seeking to attract Chinese investment in the automotive industry and other sectors.
“We certainly have a lot of work to do, and I am convinced that this work can be beneficial in this complex global environment, and also important at a multilateral level,” she said at the start of a meeting with Chinese Premier Li Qiang.
Her five-day visit comes several months after Italy withdrew from China’s Belt and Road Initiative, a key policy of Chinese leader Xi Jinping designed to expand infrastructure and transportation networks worldwide, thereby promoting global trade and strengthening China’s global connections.
However, Italy remains committed to maintaining a strong economic relationship with China. Stellantis, a major automaker that includes Italy’s Fiat, announced in May a joint venture with Leapmotor, a Chinese electric vehicle startup, to commence sales of electric vehicles in Europe.
Following the meeting with Meloni, Li addressed Italian and Chinese business leaders, stating that China’s economic upgrade will boost demand for high-quality products, presenting expanded opportunities for collaboration between businesses from both countries.
He pledged further opening of Chinese markets, ensuring equal treatment for foreign companies alongside Chinese counterparts, and establishing a transparent and predictable business environment, addressing frequent concerns expressed by businesses operating within the world’s second-largest economy.
“At the same time, we hope the Italian side will continue to provide a fairer, more just, and non-discriminatory business environment for Chinese companies conducting business in Italy,” he said.
Meloni informed the business leaders that both sides have signed a memorandum on industrial collaboration, encompassing electric vehicles and renewable energy, which she described as “sectors where China has been at the forefront of technological advancement for some time… and is sharing the latest frontiers of knowledge with partners.”
Electric vehicles have also become a symbol of escalating China-EU trade tensions, with the European Union imposing provisional tariffs of up to 37.6% on Chinese-made electric vehicles in early July. Negotiations are underway between both sides to resolve the issue by an early November deadline.
Meanwhile, China initiated an anti-dumping investigation into European pork exports, just days after the EU announced tariffs on Chinese EVs.
Meloni, who arrived in Beijing on Saturday, is undertaking her first trip to China as prime minister. She previously met with Li in New Delhi last September during the annual G-20 summit, which brings together the leaders of 20 major nations.
Italy’s decision to join the Belt and Road Initiative in 2019 initially seemed like a political victory for China, providing it with access to Western Europe and symbolic momentum during a trade war with the United States. However, Italy asserts that the promised economic benefits failed to materialize, and its membership caused friction with other Western European governments and the United States.