Prime Minister Giorgia Meloni recently returned from China, where she met with Chinese President Xi Jinping. Among the stated aims of the meeting was the search for establish new economic plans at “mutually” advantageous levels. At the end of the meeting, a three-year “framework” agreement 2024-2027 was defined to strengthen commercial cooperation, the most important of which concerns electric mobility.
From the Silk Road Exit to New Perspectives
Bilateral economic relations between Italy and China began with the Conte government's joining the Silk Road for four years in 2019 (“Belt and Road Initiative”) they were not profitable for Italy. Chinese exports to our country represent 5% of their total exports and are constantly increasing (especially computers and technological products), while Our exports to Beijing have decreased significantly.
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In 2023, Italy exported 19 billion euros worth of goods to China and imported 47.5 billion: Youan unbalanced economic relationship with a deficit trade balance of 28.5 billion (source: Ice). Now, Confindustria aims to recover at least 4.4 billion worth of consumer goods and instruments.
The non-renewal of the 2019 accession agreement in December 2023 Belt and Road Initiative – of which Italy was the only G7 country to be a member – led to a cooling of relations between the two countries, but which Meloni-Xi seeks to “repair” at this July meeting to improve economic exchanges between the two sides.
Change of course: what the new three-year Italy-China “action plan” provides
The three-year agreement signed with China is an alternative to the previous one. The objective for Italy is to relaunch trade with new, more economically sustainable agreements and that China aims to stimulate a struggling economy. In fact, the Chinese central bank cut rates for the second time in July.
Chinese electric cars yes, but produced in ItalyThe Italian proposal is an industrial collaboration on mobility Green. Electric cars produced in China are flooding the European market with falling prices, estimated at -35% on average. And this is why in Brussels the representatives of the Italian government voted in favor of imposing heavy “protectionist” taxes on Chinese cars, increased by up to +38%. Following the European and American customs tariffs, Chinese manufacturers are looking for other markets in Latin America, Asia and Africa. This is part of this perspective our government's strategy to divert commercial and industrial investment. The Dragon, for its part, aims politically, through Italy, to build a bridge between China and Europe.
Guaranteeing an annual production of one million vehicles in Italy – necessary to give a future to the supply chain of automotive components – The agreement between the two states provides for the'Chinese investment to build car factories Green in ItalyThe agreements, the government says, also provide that the opening of factories in Italy by Chinese producers is linked to the use of Italian components.
Increase theexport
Italy is currently the fourth EU country in terms of export volume to China. To increase them, it has been requested to remove barriers to the entry of Italian products into the Chinese market and there is already growth compared to the same period of 2022 in the pharmaceutical sector (+192.1%), the textile and fashion sector (+14%) and that of machinery (+0.9%).
The three-year Sino-Italian “action plan” marks a resumption of economic cooperation between the two states. The government's stated aim is to move away from a relationship import/export economically unbalanced to a “mutually” advantageous equilibrium through increased output Made in Italy on the Chinese market and quality Chinese investments in Italy for electric mobility. President Meloni said in her speech at Business Forum Italy-China, which the partnership between the two states will strengthen”in a concrete way“.
