Cautious Convergence: Objectives of the Italian Prime Minister’s Visit to China
Italian Prime Minister Giorgia Meloni conducted a five-day visit to China from July 27, 2024, to July 31, 2024, aiming to enhance bilateral relations between the two countries. Meloni first traveled to Beijing, where she met with the Chinese Premier and the President of China. She also visited Shanghai, accompanied by a delegation of Italian entrepreneurs, including leaders from Pirelli, the energy company Eni, and the luxury brand Dolce & Gabbana. This visit holds particular significance in Sino-Italian relations, especially since Meloni’s government has adopted several policies perceived as anti-Beijing following Italy’s withdrawal from China’s Belt and Road Initiative. Meanwhile, China faces challenges that may hinder its external relations with European Union countries.
Multiple Motives
The Italian Prime Minister’s visit to China follows the NATO summit, which produced statements and decisions deemed anti-Beijing, alongside the EU adopting stricter policies on Chinese products and aligning with US policies in the Indo-Pacific region. This visit, therefore, is crucial for Sino-Italian relations and China’s relations with the EU as a whole. The main motivations for this visit are:
Overcoming Economic Disagreements: This is Meloni’s first visit to China since taking office and the first European leader’s visit to China since the 20th Central Committee’s Third Plenary Session. The visit is essential at a time when China’s economy is experiencing a downturn, coinciding with a European trend to impose more restrictions on Chinese goods, particularly electric vehicles. Beijing needs to resolve its economic disputes with EU countries. Meanwhile, Meloni aims to manage differences with Beijing regarding the Belt and Road Initiative and tariffs on Chinese electric vehicles. Both countries seek to develop bilateral relations, especially in areas like new energy products, new energy vehicles, and other green technologies.
Addressing Italy’s Withdrawal from the Belt and Road Initiative: In December 2023, Italy announced its withdrawal from China’s Belt and Road Initiative, which displeased Beijing. The Chinese Foreign Ministry spokesperson, Wang Wenbin, stated that “China firmly opposes distorting and undermining cooperation in the Belt and Road Initiative, as well as forming cliques and creating artificial divisions.” Thus, Meloni’s visit aims to overcome the Italian withdrawal issue. Chinese official media reported that the visit aims to clarify misunderstandings about Italy’s withdrawal and emphasize the importance of economic relations.
Dealing with Tariff Issues: China is concerned about the increasing push to impose more tariffs on Chinese electric vehicles, with Italy among the EU countries supporting this move. Initial EU member voting results indicate Italy favors tariffs on Chinese electric vehicles. China aims to use Meloni’s visit to reach a mutually acceptable solution. Experts believe that achieving this solution would send a significant positive signal to the silent majority within the EU.
Addressing Trade Imbalance: Italy is China’s fourth-largest trade partner in the EU, and China is Italy’s largest trading partner in Asia. In 2022, bilateral trade reached approximately $78 billion, mostly Chinese exports to Italy. Italian exports to China increased to around $18.6 billion by the end of 2022, compared to about $14.5 billion in 2019, while Italian imports from China rose from about $35.4 billion to $65.8 billion. The trade imbalance has caused concern in the Italian government, prompting the Prime Minister to call for a review of bilateral relations. The visit aims to explore ways for Italy to address the significant trade deficit with China, enhance bilateral trade, ensure fair competition, and adopt balanced trade practices.
Preparing for Changes in the US Political Landscape: The visit coincides with political volatility in both Europe and the US. With the approaching US presidential elections and Donald Trump’s increasing chances of winning, Meloni’s visit to China is seen as preparation for the worst, according to China’s Global Times. The EU seeks to strengthen its unity and overcome external challenges it might face if Trump returns to power.
Meloni’s Efforts to Enhance Italy’s International Role: Meloni’s visit to Beijing is part of her efforts to elevate Italy’s international role in various issues. She aims to establish a unique approach for Rome in dealing with Beijing while also engaging in multiple regions such as Africa and the Middle East. Rome emphasizes its independent policy from other European powers, particularly France and Germany.
Reinforcing Cooperation
The visit underscores the importance of Sino-Italian cooperation, highlighted by China’s warm reception of Meloni. China’s Central Television reported that Premier Li Qiang hosted a welcome ceremony for Meloni on July 28, 2024. The visit resulted in several key outcomes:
Signing Partnership Agreements: Meloni and the Chinese side signed a work plan and a three-year cooperation memorandum to increase industrial cooperation in strategic sectors like electric mobility and renewable energy. They also signed another agreement to enhance food safety. Premier Li Qiang’s office noted that both sides agreed to strengthen mutual cooperation between small and medium-sized enterprises in areas such as shipbuilding, aerospace, new energy, and artificial intelligence. Other reports indicated that the Italian government held talks with several Chinese car manufacturers as part of efforts to attract another major manufacturer to Italy, in addition to Stellantis.
President Xi’s Call for Continued Bilateral Cooperation: During his meeting with Meloni, President Xi emphasized the need to continue bilateral cooperation. Xi noted, “China and Italy once represented the start and end of the ancient Silk Road, and long-standing friendly interactions between the two countries have contributed to the engagement between Eastern and Western civilizations.”
Meloni Urging Beijing to Play a Bigger Role in Ending the Ukraine War: Meloni highlighted that China is a key player in managing global tensions. In a press conference in Beijing on July 30, 2024, she stated, “Beijing’s support for Russia’s defense industries is a major friction point,” but also mentioned that “the Chinese government is crucial in finding a solution to the Russian-Ukrainian conflict.” Meloni added, “I believe China can become a major player in helping to define elements of a just peace, based on the principles of sovereignty and territorial integrity that it always advocates.”
Efforts to Coordinate on International Crises: The visit revealed efforts to coordinate on current international crises. The Italian Prime Minister’s office stated that Meloni discussed with President Xi developments in several international crises. The office’s statement noted that they discussed “priority issues on the international stage, from the war in Ukraine to the risks of escalating tensions in the Middle East, and the increasing tensions in the Indo-Pacific region.”
Holding the 7th Meeting of the Sino-Italian Business Leaders Committee: Premier Li Qiang and Meloni attended the opening of the 7th meeting of the Sino-Italian Business Leaders Committee, calling for enhanced economic and trade cooperation. Both parties made significant statements; Meloni said at the Italian-Chinese Business Forum in Beijing: “Strengthening economic relations will require efforts to make the trade relationship fairer and more beneficial for all. Clearly, we cannot ignore the significant trade imbalance between the two countries in favor of China.” Meloni also stressed the need to improve market access in China and stronger intellectual property protection. A Chinese Deputy State Minister responded by saying, “Adopting protectionist policies will not protect or enhance European competitiveness. We hope the EU views China’s development objectively and deepens dialogue and cooperation.” The forum was attended by leaders of major Italian companies such as Pirelli, Eni, Dolce & Gabbana, the defense group Leonardo, and other wine manufacturers.
Meloni’s Interest in Developing Relations with the Business Community and Industries in Shanghai: During her visit to Shanghai, Meloni aimed to strengthen industrial and investment links with major industrial companies in Shanghai, where about 1,200 Italian companies operate. She met with the local Communist Party Secretary, Chen Jining, who described Shanghai as “a crucial point for cooperation between Italy and China, contributing about 20% of total trade between China and Italy,” and expressed readiness to encourage the development of bilateral relations.
In conclusion, while the Italian Prime Minister promotes her visit to China as a success in enhancing bilateral relations, there are challenges to the development of these relations. Meloni remains cautious about China and the potential extensive commercial reliance on it, which partly explains Italy’s withdrawal from the Belt and Road Initiative. Italy is also a major supporter of EU tariffs on Chinese electric vehicles. The biggest challenge to Sino-Italian relations remains the ongoing Russian-Ukrainian war and Beijing’s strengthened partnership with Moscow. Therefore, significant leaps in bilateral relations are unlikely, but the outcome of the US elections might prompt many European countries, particularly Italy, to reconsider their foreign policies with China and adopt more independent policies from Washington.
