Prominent Italian and EU officials are sounding the alarm over Rome’s endorsement of the China-led Belt and Road Initiative, saying Beijing could be seeking to expand its political influence in Europe rather than boost its trading relations with the EU.
Kristian Rouz — The cabinet of Italian Prime Minister Guiseppe Conte endorses China’s Belt and Road investment and trade initiative, making Italy the first G7 nation to sign up to the scheme. The announcement has sparked worries among EU officials, who say the agreement between Rome and Beijing could result in conflicts of interest in China-EU trade.
In a signing ceremony Saturday, Italian Deputy Prime Minister Luigi Di Maio said Rome would uphold its commitments within the EU and the bloc’s trading relations with other Western partners, including the US. However, Italian officials said the Belt and Road could serve as a way to help the struggling Italian economy — despite concern that the deal between Italy and China could produce additional trade tensions.
“This is a very important day for us, a day when Made-in-Italy has won, Italy has won and Italian companies have won,” Di Maio said.
The agreement has reportedly raised questions in Washington, as it comes amid heightened tensions between China and what the US sees as Beijing’s malicious trade practices and forced technology acquisition. Some experts expressed concern China could gain access to breakthrough EU technology through its pact with Italy, while promising billions of investment into the ailing Italian economy.
During Chinese President Xi Jinping’s visit, Italian companies signed $2.8 bln worth of deals with their Chinese counterparts, saying a total value of future deals could reach up to 20 bln euros.
However, the EU appears to be sceptical as its main exporter, Germany, is facing the prospect of stringent US tariffs on cars. In this light, Brussels would rather not irritate Washington — as the US sees Belt and Road as advancing what it calls China’s predatory lending and debt diplomacy across the globe.
The deal between Italy and China comes after EU officials said at a summit this past Friday that China is a ‘systemic rival’, adding that Brussels should develop a strategy to contain the spread of China’s economic and political influence, including in Europe.
However, Xi dismissed such concerns, saying the expansion of Belt and Road into Italy simply represents ‘business as usual’, and does not have any political strings attached./sputnik
