On March 23, 2019, China and Italy signed a memorandum of understanding to jointly cooperate on the Belt and Road Initiative (BRI) – China`s ambitious global infrastructure project. Together, they agreed to strengthen trade relations, increase investment, and improve connectivity between China, Italy, and the rest of Europe.
The trade agreement between China and Italy is significant because it strengthens economic ties between the two countries and opens up new opportunities for trade and investment. Italy is an important gateway to Europe, making it an ideal partner for China as it seeks to expand its global reach through the BRI.
Under the agreement, China and Italy will work together on a range of infrastructure projects, including the construction of ports, highways, and railways. They will also focus on joint investment in key sectors such as energy, agriculture, and tourism.
One of the main goals of the trade agreement between China and Italy is to increase trade volumes between the two countries. Currently, Italy is China`s seventh-largest trading partner in the European Union, with bilateral trade reaching over 42 billion euros in 2018. The two countries hope to increase this figure to 50 billion euros by 2020.
Another important aspect of the agreement is the improvement of connectivity between China and Europe. Italy plans to participate in the BRI by developing new transport routes that will connect the country with the rest of Europe. This will help pave the way for increased trade and investment between China and the EU.
In addition to economic benefits, the trade agreement between China and Italy also has important geopolitical implications. Italy is the first of the G7 nations to formally endorse the BRI, a move that has caused concern among some Western countries. By strengthening ties with Italy, China is positioning itself as a key player in Europe and pushing back against the US-led global order.
However, there are also concerns about China`s growing influence in Europe. Some European leaders worry that China`s investments could lead to debt traps and undermine democracy and human rights. Italy`s endorsement of the BRI has also caused tensions within the EU, with some member states calling for a unified approach to dealing with China`s rise.
Overall, the trade agreement between China and Italy represents a significant step forward in China`s efforts to expand its global reach through the BRI. While it offers many economic benefits, it also raises important questions about the implications of China`s growing influence in Europe and the world. As the BRI continues to expand, it will be up to policymakers to navigate the challenges and opportunities that arise.