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TradeItaly

China raps Italy for 'malicious' criticism of Belt and Road

August 4, 2023

China's trillion-dollar infrastructure plan is meant to improve trade between Asia and Europe. Rome is now trying to withdraw from the deal, saying the previous government made an "atrocious" decision to join.

Italian Prime Minister Giorgia Meloni meeting with Chinese President Xi Jinping in Bali, Indonesia on November 16, 2022
Italian Prime Minister Giorgia Meloni with Chinese President Xi Jinping in Bali, IndonesiaImage: Shen Hong/Zumapress/picture alliance

China on Friday blamed "some forces" within the Italian government who it said had "politicized" the Asian country's huge Belt and Road Initiative (BRI), of which Italy is a member.

In a statement, the Chinese Foreign Ministry said it believed the recent criticism by Rome of its links to the BRI was an attempt to "disrupt cooperation and create division."

It warned that the "malicious hype" created by Italy's far-right government "goes against the trend of history and will hurt others without benefiting oneself."

The ministry was responding to Italian Defense Minister Guido Crosetto's labeling last week of his country's decision to join the BRI as an "improvised and atrocious act."

Noting how Italy's previous government had been the only one in Europe to sign up to the intercontinental infrastructure plan, Crosetto told the Corriere della Sera newspaper that the dilemma is how to wriggle out of the BRI without damaging relations with Beijing.

What is China's Belt and Road Initiative (BRI)?

Dubbed the New Silk Road, the BRI scheme envisions rebuilding ancient trade links between China, the rest of Asia, Europe and beyond.

China has convinced more than 150 countries and 30 international organizations to create more than 3,000 infrastructure projects, including roads, railway lines and ports.

Beijing said the BRI has already attracted investments worth nearly $1 trillion (€0.91 trillion).

BRI cooperation will help lift nearly 40 million people out of poverty globally in the mid-to-long term, a report from the World Bank said.

But critics see BRI as a tool for Beijing to increase its geopolitical and economic influence while loading low-income countries with unmanageable debts.

China is building new roads, railway lines and ports across much of Asia and AfricaImage: Tharaka Basnayaka/NurPhoto/picture alliance

What is Italy's involvement in BRI?

In 2019, Italy became the first and so far only G7 nation to join the BRI, signing a total of 29 deals, worth $2.8 billion.

Chinese President Xi Jinping traveled to Italy to sign the agreement with then-Prime Minister Giuseppe Conte.

Noting that China had recently acquired a large stake in Greece's Port of Piraeus, the Italian government said its involvement with the BRI would ensure many Chinese-made goods would still arrive through Italian ports and then be transported onto the rest of Europe via Italian road and rail links.

Rome was also keen to find new sources of trade as it was still struggling economically following the 2011 euro debt crisis and the 2008/9 global financial crisis. Still, the decision took many Western leaders by surprise.

Will Italy soon pull out of the deal?

Italy is seen as highly unlikely to renew its BRI deal when it expires in March 2024, and Prime Minister Giorgia Meloni said in May it was possible to have good relations with Beijing without being part of the pact.

After a White House meeting with US President Joe Biden last week, Meloni said her government was still deliberating on the infrastructure deal and announced a trip to Beijing in the near future.

"We'll take a decision before December," Meloni told US broadcaster Fox News in an interview aired Sunday, adding that the issue required discussions with the Chinese government and within the Italian parliament.

Crosetto said Italy's exports to China have shown only a marginal increase, while Chinese imports have gone up three times.

"The issue today is: how to walk back (from the BRI) without damaging relations (with Beijing). Because it is true that China is a competitor, but it is also a partner," he told the newspaper.

Italy’s withdrawal would deal another blow to the BRI, which has already been scaled back as recipient countries grapple with unpayable debts related to infrastructure projects.

mm/sms (AFP, AP, Reuters)

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