Why Is Italy Sceptical Of China's Belt And Road Initiative?

Italian Prime Minister Giorgia Meloni has expressed a desire to strengthen ties with China, even as her government considers withdrawing from Beijing's controversial Belt and Road Initiative (BRI) in the coming months.

During a press conference in New Delhi at the end of the G20 summit, Meloni emphasized the importance of establishing a partnership that benefits both parties, regardless of Italy's stance on the BRI. She also held discussions with Chinese Premier Li Qiang on the future of Italian-Chinese relations.

Italy's decision to join the BRI in 2019, making it the only G7 nation to do so, drew criticism from Western allies, particularly the United States. Meloni has previously referred to this move, made by a previous government, as a "mistake."

Officials in Italy now aim to disentangle themselves from the BRI without antagonizing China, seeking alternative avenues to enhance economic cooperation. In June, this intention was signaled when Italy restricted Chinese chemical company Sinochem's shareholder rights in the Milan-listed tire manufacturer Pirelli, citing national security concerns.

Meloni highlighted the positive atmosphere of her talks with Li and pointed out that several European countries that never joined the BRI have managed to establish more advantageous relationships with China.

While reiterating her intention to visit China, Meloni stated that specific dates would only be set once both countries reach an understanding on bilateral cooperation and how to strengthen it.

According to China's state news agency Xinhua, Li expressed hope that Italy would offer a fair, just, and non-discriminatory business environment for Chinese companies. However, there was no specific mention of Pirelli in the report.

China has been urging Italy not to withdraw from the BRI, with Foreign Minister Wang Yi emphasizing the growth in bilateral trade over the past five years. He also stressed the importance of mutual respect and trust between China and Italy, despite geopolitical tensions.

Italy's BRI membership is set to be automatically renewed for five more years in 2024, unless Rome formally notifies Beijing of its intent to withdraw in the coming months.

Michele Geraci, a former under-secretary in Italy's Ministry of Economic Development who advocated for Italy's participation in the BRI, has argued that Meloni's government lacks a coherent strategy for dealing with Beijing. He believes that Italian companies and citizens engaged with China would face significant consequences if Italy pulls out of the program.

Additionally, EU Council President Charles Michel, who met separately with Li in New Delhi, expressed a "shared interest" in holding an EU-China summit before the year's end. However, he emphasized the need for high-level sectoral dialogues to prepare for such a meeting.

China, since 2007, has invested more than $318 billion across Europe. Investments by state-owned enterprises of China alone constitute more than $165 billion worth of investments.

The United Kingdom saw more than 220 deals of around $70 billion, Italy and Germany had deals worth $31 billion and $20 billion respectively, across sectors ranging from technology to airlines. Other states also have fairly high levels of investments. China has investments worth $5.8 billion in Norway, $7.3 billion in Sweden, $2.1 billion in Greece, $13.4 billion in France, close to $7 billion in Spain, around $8.6 billion in Portugal, and $9.2 billion in Finland.