Italy, China sign 3-yr economic co-operation plan

Italy and China signed a three-year action plan to strengthen economic ties and explore new forms of co-operation, as announced by Italian Prime Minister Giorgia Meloni during her official visit to Beijing on Sunday.

The agreement aims to implement past accords and foster collaboration in sectors such as auto manufacturing amid growing trade tensions between China and the European Union (EU).

Prime Minister Meloni emphasised the importance of the agreement, stating, “We certainly have a lot of work to do, and I am convinced that this work can be useful in such a complex phase on a global level and also important at a multilateral level.”

Her visit comes months after Italy’s withdrawal from China’s Belt and Road Initiative, a move that was initially seen as a strategic win for China but failed to deliver the anticipated economic benefits for Italy.

Despite stepping back from the Belt and Road Initiative, Italy is keen to maintain strong economic relations with China.

Notably, Stellantis, an automotive giant that includes Italy’s Fiat, announced in May a joint venture with Chinese electric vehicle (EV) startup Leapmotor to introduce EVs in the European market.

The push for stronger ties comes against the backdrop of increasing trade tensions between China and the EU.

The EU recently imposed provisional tariffs of up to 37.6 per cent on Chinese-made electric vehicles, prompting China to launch an anti-dumping investigation into European pork exports.

Meloni’s visit to China, which began on Saturday, included discussions with Chinese Premier Li Qiang. The two leaders previously met during the G-20 summit in New Delhi last September, highlighting ongoing diplomatic engagements despite economic disagreements.