Italian PM Giorgia Meloni Visits China to Improve Bilateral Relations

ROME/BEIJING - Italy's Prime Minister Giorgia Meloni pledged on Sunday to "relaunch" cooperation with China during her first official visit to Beijing since taking office, signing a three-year action plan.

Meloni, who has led Italy's right-wing government since 2022, announced during a meeting with Chinese Prime Minister Li Qiang.

The visit comes as Italy seeks to boost trade relations with Beijing following its withdrawal from President Xi Jinping's Belt and Road infrastructure investment scheme last year.

The Italian leader said her five-day trip was a "demonstration of the desire to start a new phase, to relaunch our bilateral cooperation". She added that the action plan aims to experiment with new forms of cooperation.

Later that day, Meloni said that the industrial cooperation memorandum signed by Italy and China covers strategic industrial sectors such as electric cars and renewable energy.

Li Qiang pointed to "mutually beneficial cooperation between small and medium-sized companies in shipbuilding, aerospace, new energy, artificial intelligence," in a statement released by his office.

Meloni, who sees Chinese investment as a way to stimulate Italy's sluggish economic growth, will meet with Xi and China's top legislator, Zhao Leji, who is third in the leadership hierarchy.

On Sunday, Meloni also attended the Italy-China business forum, which invited companies including Italian tire maker Pirelli, energy group ENI, defense group Leonardo, wine producers, and several Italian luxury fashion groups such as Dolce & Gabbana.

The forum provided "another signal about the common interest ... (to) better balance our interests, our commercial exchanges," she said. Meloni is expected to discuss China's overcapacity with Chinese officials, as well as China's economic support for Russia in its war with Ukraine.

"China and Italy should adopt a win-win mentality and enhance trade and investment cooperation, making cooperation more dynamic and sustainable," Li said at the forum's opening, according to a video shared by Meloni's office.

'CLARIFYING MISUNDERSTANDINGS'

In 2019, Italy became the only Group of Seven country to join the large but controversial Belt and Road Initiative. Still, it withdrew last year under US pressure over concerns about Beijing's economic reach.

The Meloni government said the agreement brought no benefits to Italy, whose trade with China - worth 66.8 billion euros ($80 billion) in 2023 - is heavily tilted towards Beijing. China is Italy's largest non-EU trading partner after the US.

Chinese state media said the trip aimed to "clarify some misunderstandings" over Italy's withdrawal from the Belt and Road and emphasize the importance of economic relations.

The Italian government is in talks with Chinese car manufacturers as part of efforts to attract other major manufacturers to the country besides Stellantis.

Speaking at the Business Forum, Meloni said the industrial cooperation memorandum signed by Italy and China "covers strategic industrial sectors such as electric mobility and renewable energy" and called on Beijing to share "the limits of new knowledge with its partners".

Protection of geographical indications, food safety, environment, and education were the focus of other framework agreements.

Italy's direct foreign investment in China totals 15 billion euros ($16 billion), and more than 1,600 Italian companies are active, mainly in textiles, mechanical engineering, pharmaceuticals, energy, and heavy industry.

However, Italy supports the European Commission's decision to impose temporary tariffs of up to 37.6% on electric vehicles imported from China. Beijing reacted angrily and has launched a retaliatory investigation into European brandy and pork.

G7 members, including Italy, pledged last month to continue protecting their businesses from what they consider to be China's unfair trade practices.