Italy, the sole G7 nation participating in China’s Belt and Road Initiative (BRI), is reportedly considering a withdrawal from the deal, posing a significant setback to China’s efforts to revitalize its post-Covid economy.
Italy’s Concerns with the BRI Deal
Italy’s Foreign Minister, Antonio Tajani, expressed reservations about the BRI deal, stating that it “has failed to meet Italian expectations” ahead of his visit to Beijing. The BRI deal is set to renew automatically in March 2024 unless Italy opts for withdrawal by the end of this year.
Tajani highlighted the disparity in Italian exports to China compared to France and Germany. Italy’s 2022 exports to China amounted to €16.5 billion ($17.8 billion), significantly lower than France’s €23 billion and Germany’s €107 billion.
Italian Defense Minister Guido Crosetto criticized Italy’s participation in the BRI, referring to it as an “improvised and atrocious act.” Prime Minister Giorgia Meloni has also labeled the deal a “big mistake” that she intends to rectify.
Potential Impact on China and Xi Jinping
Italy’s withdrawal from the BRI would be a major setback for China’s ambitions in Europe and a source of embarrassment for Chinese President Xi Jinping. The BRI, one of the world’s most extensive infrastructure initiatives, is central to Xi’s foreign policy, involving substantial investments in ports, railways, and airports to bolster trade connections between Asia, Africa, and Europe.
Italy’s decision to join the BRI in 2019 had irked the US and Europe, signifying a diplomatic victory for Xi. Exiting the BRI on its 10th anniversary would be a significant blow to Beijing. Chinese authorities have criticized those who have “hyped up and politicized” Rome’s BRI membership.
The withdrawal reflects broader trends in Europe as governments grow cautious of their economic reliance on China. While Rome may have been motivated to attract Chinese investments and expand its exports, the expected gains did not materialize substantially.
Italy Contemplating Withdrawal from China’s Belt and Road Initiative, Dealing Potential Blow to Beijing
The Withdrawal Process
It is speculated that the withdrawal has already been informally agreed upon with Chinese authorities. Prime Minister Meloni is expected to make an official announcement during her state visit to Beijing, slated for mid-October. However, the Italian parliament will ultimately decide on the matter.
China’s Relations with Europe
Italy Contemplating Withdrawal from China’s Belt and Road Initiative, Dealing Potential Blow to Beijing
Over the past decade, two-thirds of European Union members, primarily in Eastern Europe, have joined the BRI. However, the economic dividends promised by the initiative have not materialized as anticipated, leading many nations to reconsider their participation. European countries are increasingly viewing China as a competitor and challenge, rather than merely an economic opportunity.
Furthermore, China’s support for Russia in its war against Ukraine has prompted European governments, including Italy, to reevaluate their perceptions of China.
Italy Contemplating Withdrawal from China’s Belt and Road Initiative, Dealing Potential Blow to Beijing
Italy’s potential withdrawal from the BRI marks a pivotal moment in the evolving relationship between Europe and China.
[Note: The article has been restructured for clarity and coherence.]