Italy, China sign three-year action plan to strengthen economic ties

Hind Al Soulia - Riyadh - BEIJING — Italy and China signed a three-year action plan on Sunday to implement past agreements and explore new forms of cooperation, as announced by Italy’s Prime Minister Giorgia Meloni during her official visit to Beijing.

Meloni is aiming to reset relations with China amidst concerns of a potential trade war with the European Union while maintaining an interest in attracting Chinese investments, particularly in the auto manufacturing sector.

“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,” Meloni remarked at the start of a meeting with Chinese Premier Li Qiang.

Her five-day visit follows Italy's recent decision to exit China’s Belt and Road Initiative, a key policy of Chinese leader Xi Jinping aimed at building global infrastructure to stimulate trade and strengthen China’s international ties.

Despite this exit, Italy remains committed to a robust economic relationship with China. In May, Stellantis, which includes Italy’s Fiat, announced a joint venture with Chinese electric car startup Leapmotor to start selling EVs in Europe.

Addressing Italian and Chinese business leaders, Li Qiang noted that China’s economic upgrades would increase demand for high-quality products, enhancing cooperation opportunities between companies from both countries. He pledged to further open Chinese markets, ensure equal treatment for foreign companies, and create a transparent and predictable business environment, addressing common business complaints.

“We hope the Italian side will work with China to provide a fair, just, and non-discriminatory business environment for Chinese companies doing business in Italy,” Li added.

Meloni told business leaders that the two sides had signed an industrial collaboration memorandum, covering sectors such as electric vehicles and renewable energy. She highlighted these as areas where China has been technologically advanced and is now sharing knowledge with partners.

Electric vehicles have become a focal point of growing China-EU trade tensions. The European Union imposed provisional tariffs of up to 37.6% on Chinese-made electric vehicles in early July, with ongoing talks aiming to resolve the issue by early November. In response, China launched an anti-dumping investigation into European pork exports shortly after the EU announced its tariffs on Chinese EVs.

Meloni's visit to Beijing, her first as prime minister, included discussions with Li Qiang, following their previous meeting at the G-20 summit in New Delhi last September.

Italy joined the Belt and Road Initiative in 2019, which was seen as a political success for China, providing an entry into Western Europe during a trade war with the United States. However, Italy claims the expected economic benefits did not materialize, and its membership caused friction with other Western European governments and the United States. — Agencies