Quiver Quantitative - Italy has formally announced its exit from the Belt and Road Initiative (BRI), a significant shift in its foreign policy that marks a departure from the 2019 agreement with China. The decision, communicated to Beijing recently, aligns with Prime Minister Giorgia Meloni's stance that the initiative, despite high expectations, failed to yield substantial economic benefits for Italy. This move comes as Italy prepares to assume the presidency of the G7 in 2024, signaling a realignment of its international trade and diplomatic relations.
Under the 2019 accord, Italy was the first major Western nation to join China's global trade and infrastructure project, initiated by President Xi Jinping. However, the anticipated boost in exports and economic growth did not materialize as expected. Italian exports to China increased modestly, while Chinese exports to Italy saw a more significant rise. Notably, Italy’s major eurozone trading partners, France and Germany, achieved higher export levels to China without being part of the BRI.
The decision to leave the BRI reflects Italy's growing concerns about strategic autonomy and the balance of economic gains. Successive Italian governments have shown apprehension about the initiative, occasionally blocking Chinese takeovers and limiting Chinese influence in key Italian industries. For instance, in June, Meloni's cabinet exercised its "golden power" rules to restrict the influence of Chinese shareholder Sinochem over the Italian tyremaker Pirelli.
Despite withdrawing from the BRI, Italy is keen to maintain cordial relations with China, as evidenced by recent high-level visits and planned engagements. Foreign Minister Antonio Tajani's visit to Beijing and President Sergio Mattarella's scheduled visit to China next year, alongside Meloni’s proposed trip, underscore Italy's intent to sustain strategic ties with China. Meloni's government, emphasizing its pro-NATO stance, has reassured the United States of its commitment to strategic alliances outside of the BRI framework.
This article was originally published on Quiver Quantitative