Italy’s Meloni to visit China this week with trade, investment agenda

This content was published on July 24, 2024 - 18:43

2 minutes

ROME (Reuters) – Italian Prime Minister Giorgia Meloni will visit China from July 26-31 on her first trip there since taking office, aiming to improve trade with China, a person involved in the planning told Reuters.

Meloni, who sees Chinese investment as a way to spur Italy’s anaemic economic growth, is expected to meet Chinese President Xi Jinping and Premier Li Qiang.

Italian tyre-maker Pirelli, energy group ENI, defence group Leonardo, wine producers and several Italian luxury fashion groups including Dolce & Gabbana are among the companies invited to an Italy-China Business Forum to be held in Beijing on Sunday and Monday during Meloni’s visit.

In 2019, Italy became the only G7 country to join China’s trade and infrastructure project known as the Belt and Road Initiative (BRI), but withdrew from it last year under U.S. pressure over concerns about Beijing’s economic reach.

Meloni’s government said the deal had brought no benefits to Italy, whose 73.9 billion euro ($80.13 billion) annual trade with China, according to latest data, is heavily tilted towards Beijing.

Bilateral trade and industrial agreements are expected to be signed during Meloni’s trip, another source close to the planning said, without providing details.

One of the panels of the business forum will be dedicated to the automotive sector. The Italian government is holding talks with Chinese automakers as part of efforts to attract another major automaker to the country in addition to Stellantis and increase national car production.

China’s industry ministry said earlier this month that it was willing to promote practical cooperation with Italy in areas such as automobiles, ships and small- and medium-sized enterprises.

During her visit, Meloni is also expected to raise the question of overcapacity in Chinese production and China’s support for Russia in Moscow’s war with Ukraine.

At a meeting hosted by Italy in Borgo Egnazia last month, the G7 members – the United States, Italy, Britain, France, Germany, Japan and Canada – said they were not trying to harm China or thwart its economic development but would continue to take actions to protect their businesses from unfair practices.

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