Italy withdraws from BRI: Reports
Italy is the only member of the Group of Seven which had joined Chinese President Xi Jinping’s pet infrastructure project. This month, it became just one of five countries whose citizens have been given visa-free status to visit China.
Prime Minister Giorgia Meloni, has made no bones about wanting to abandon the membership. Even before she had gained power in October last year, she said that Italy’s decision to join the BRI in 2019 was a “serious mistake.” The foreign minister had also complained in September that the BRI had not produced the results hoped for.
Italy is believed to have formally submitted its plan a few days ago. BRI partners are under obligation to give three months’ notice ahead of an automatic renewal of their membership for five years and Italy’s is due in March.
The trade imbalance between China and Italy has been growing exponentially. According to the International Monetary Fund Italy’s exports to China increased just 19% to $17.3 billion from 2019 to 2022, but its imports from China jumped nearly 71% to $60.5 billion in the same period.
Particularly awkward for Xi is that the news of Italy’s withdrawal comes a day before Beijing hosts the first in-person EU-China summit since 2019. Europe has been seeking to de-risk and cut reliance on Chinese imports, especially of those the bloc considers to be critical raw materials.
Given the existing sticking points between China and Europe over geopolitical issues, in particular Beijing’s warm relations with Russian President Vladimir Putin, who has been sanctioned by the West over Russia’s war with Ukraine, the meeting in Beijing is expected to be “an icy summit,” said Julienne. Europe wants China to broker an end to the war, but Beijing has refused to condemn Putin.
Yet, even as Europe seeks to distance itself from China, individual countries also realize they need to keep workable relationships with the world’s second-largest economy.
Italy is due to take over the G7 presidency next year.
