Italy Officially Withdraws from China's Belt and Road Initiative

07 Dec, 2023

Italy Officially Withdraws from China's Belt and Road Initiative

Italy has communicated its official decision to Beijing to withdraw from President Xi Jinping’s prominent Belt and Road Initiative (BRI), marking the end of speculation surrounding a relationship that had strained ties with Rome’s Western allies. The confirmation arrives three months after Prime Minister Giorgia Meloni publicly acknowledged her right-wing government's contemplation of a withdrawal from the BRI, emphasizing the intention to uphold mutually beneficial relations with Beijing.

A senior Italian official, preferring anonymity, verified on Wednesday that Rome had formally informed Beijing about its plan to exit the agreement. The automatic renewal of the deal for another five years in early 2024 has been effectively halted by this decision, although Meloni's office declined to comment.

Italy’s initial participation in China’s ambitious global trade and infrastructure investment initiative in 2019 had unsettled its Western allies, being the sole G7 member to join. Stefano Stefanini, Italy’s former ambassador to NATO, remarked on the government's underestimation of the initiative's geopolitical significance, citing a belief that Italy could align with China despite its unique position among G7 nations.

However, escalating tensions between Beijing and Washington, coupled with Western efforts to reduce reliance on China, especially in critical sectors, rendered Italy's continued involvement untenable. Stefanini highlighted an official G7 policy called "de-risking" and the US signaling the incompatibility of participation with Italy's G7 status.

Italian officials sought a graceful exit from the BRI to avoid severe retaliation from Beijing. Foreign Minister Antonio Tajani engaged in talks in Beijing, while Meloni discussed the matter with Chinese Premier Li Qiang at the G20 summit in New Delhi. Meloni stressed Italy’s desire for a robust relationship with China, even as the prospect of exiting the BRI was indicated.

However, Michele Geraci, former under-secretary in Italy’s economic development ministry and a staunch supporter of Italy joining the BRI in 2019, strongly criticized the government's withdrawal. Geraci anticipated negative repercussions on Italian businesses, particularly in exports and the perception of luxury goods by Chinese consumers.

As of now, there has been no immediate official reaction from China regarding Italy’s decision.