Italy’s Prime Minister Giorgia Meloni traveled to China to sign a business-friendly memorandum between the two countries.
Italy and China signed a 3-year industrial and economic cooperation agreement in Beijing, as Italian Prime Minister Giorgia Meloni traveled to the Chinese capital. This is the first top-level meeting between Italian and Chinese officials since the G20 summit in New Delhi last year.
China is a crucial market for Italian goods, especially in the automotive, luxury, and energy sectors. China is Italy’s largest trade partner outside Europe and the United States.
However, the economic relationship between the two countries was strained after Giorgia Meloni’s far-right government took power in late 2022. Under Meloni’s predecessor Giuseppe Conte, Italy was the only Western European country to join China’s Belt and Road Initiative.
Under pressure from the United States, who disliked China’s strong influence in the Mediterranean country, and without seeing any meaningful economic achievement, Meloni withdrew Italy from the program.
Last month, Italy was also one of the countries in favor of the EU’s tariffs against Chinese EVs. Italy is a crucial lynchpin in Europe’s massive automotive industry, hosting companies like Fiat, Alfa Romeo, the tire maker Pirelli, and several luxury brands.
The European Commission fears China’s overproduction of electric vehicles and believes that Beijing operates unfair market practices to “invade” foreign markets with cheap products. Brussels hit Chinese EVs with tariffs up to 37.6%, on top of the already existing 10% duties.
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Despite the increased economic tensions between the EU and China, the latter remains a vital market for Italy. Trade between Italy and China amounts to $80 billion annually, though it heavily leans in Beijing’s favor.
More than 1,600 Italian companies operate in China, with over $15 billion in direct Italian investments in the country. The Italian-French automaker Stellantis recently opened a joint venture with the Chinese start-up Leapmotor. The idea is to combine Chinese digital innovation with Italian production methods.
According to Chinese media, the goal of Meloni’s trip is to “clarify some misunderstanding”. Giorgia Meloni met with Chinese Prime Minister Li Qiang and signed a 3-year memorandum that “includes strategic industrial sectors such as electric mobility and renewables,” the Italian PM said.
Li Qiang said the deal aims at “mutually beneficial cooperation between small and medium-sized enterprises in the fields of shipbuilding, aerospace, new energy, and artificial intelligence.”
Meloni will remain in China for 5 days and host a business forum where CEOs of several Italian companies are invited.
