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Trade and diplomacy: Italy's next engagements with China

Trade and diplomacy: Italy's next engagements with China

 


At a press conference during the G7 summit in Puglia, Prime Minister Meloni announced her plans for an upcoming mission to Beijing. She also argued for fair competition, with potential investments on the table, including a major project by carmaker Dongfeng, which aims to revitalize Italy's industrial capacity.

Meloni's mission to China.At a press conference at the end of the G7 summit in Puglia, Italian Prime Minister Giorgia Meloni revealed plans for an upcoming mission to China.

  • Although specific dates have not yet been confirmed, Meloni stressed his intention to follow up on an invitation issued some time ago by Chinese President Xi Jinping.
  • “We are currently working on a mission to China for the coming weeks,” Meloni said. “It’s definitely one of the things I’d like to do.”

Requirement for fair competition.The G7 summit took a tough stance on China, emphasizing the importance of fair competition. Prime Minister Meloni sent a clear message to China, emphasizing the importance of maintaining open communication while ensuring balanced competition.

  • “We are open to dialogue, but our companies must be able to compete fairly, because a market can only be truly open if it is also fair,” Meloni said at the press conference.
  • She emphasized the need for a level playing field and the need for free markets to operate within a framework of fairness.

China in the spotlight. The summit's final communiqué mentions China 29 times, reflecting the changing geopolitical landscape and increased attention to China-related issues.

  • The statement addresses various concerns, such as cybersecurity, encroachments in the Indo-Pacific region, the situation in Taiwan and the call for China to pressure Russia for real peace with the 'Ukraine.
  • The G7 also reiterated its sanctions against Chinese organizations that provide significant support to Russia's war efforts.

Strategic commercial negotiations.Ahead of Meloni's upcoming visit to China, Italian Business Minister Adolfo Urso is expected to visit Beijing on July 4. Before the visit, Urso stressed that the current Italian government has never used “golden power” to block Chinese acquisitions, demonstrating a nuanced approach to economic relations with China.

  • Later this month, Prime Minister Meloni will meet with President Xi Jinping. The discussions will cover a variety of topics, including a major investment by Dongfeng, a state-controlled Chinese automaker.
  • This investment aims to address Italy's unused industrial capacity, potentially leading to the production of 400-500,000 Chinese electric cars per year. This initiative could involve resurrecting old Italian brands currently owned by the government.

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