Italy Withdraws from China's Belt and Road Initiative

08 Dec, 2023

Italy Withdraws from China's Belt and Road Initiative

Italy has officially confirmed its decision to withdraw from China's prominent Belt and Road Initiative (BRI). Prime Minister Giorgia Meloni's administration informed Beijing about its discontinuation from the BRI, surpassing a deadline set by the year's end.

In 2019, Italy stood as the sole major Western nation to join China's ambitious trade and infrastructure initiative, the BRI, eliciting heavy criticism from the US and other global entities.

The BRI, initiated by Chinese President Xi Jinping in 2013, aimed to channel an estimated $1 trillion across Asia and Europe, fostering projects encompassing new and upgraded railways and ports to interlink China with Europe and various parts of Asia.

In response to Italy's withdrawal from the BRI, a Chinese foreign ministry spokesperson refrained from naming Rome directly but expressed China's firm opposition to actions that smear Belt and Road cooperation.

During a visit by EU leaders to Beijing, President Xi addressed the broader China-Europe relations, advocating for partnership and the elimination of interference. European Commission President Ursula von der Leyen acknowledged China's significance as the EU's primary trading partner while emphasizing the necessity to address existing imbalances and disparities.

Criticism towards China's BRI has persisted, particularly from the US, branding it as "debt-trap diplomacy" and highlighting concerns about unsustainably large projects that countries struggle to finance, granting Beijing undue leverage.

Italy's BRI membership, the largest among 18 EU members, was scheduled for automatic renewal in March of the following year unless a withdrawal notice was issued by the end of the current year.

Prime Minister Meloni, echoing prior sentiments, criticized the former government's decision to join the initiative, signaling a likelihood of withdrawal. However, despite the move, the Italian government underscored its intentions to uphold positive relations with China.

Despite pledges made by President Xi in 2019 for investments worth up to €20 billion in Italy, only a fraction of this commitment has materialized. Notably, Italian exports to China surged to €16.4 billion in the previous year, while Chinese exports to Italy escalated to €57.5 billion.

Meloni's tenure has seen a shift toward a more pro-Western and pro-NATO foreign policy, diverging from her predecessors' approaches. This decision coincides with a summit between EU Commission President Ursula von der Leyen and President Xi, where von der Leyen is anticipated to caution against the influx of inexpensive Chinese goods, including solar panels and electric cars, into the EU market.