Italy's Defense Minister, Guido Crosetto, has made a strong statement indicating that Italy is planning to rescind its controversial investment pact with China. In an interview with Corriere della Sera, Crosetto, a close ally of Prime Minister Giorgia Meloni, emphasized the need for Italy to "get out" of the China pact without creating a disaster.
Italy is currently the only member of the Group of Seven (G7) countries that has joined China's Belt and Road Initiative, a flagship project led by Chinese President Xi Jinping. The agreement between Italy and China is set for automatic renewal at the end of this year unless Italy decides to abandon it. Previous reports have suggested that Italian officials have assured the United States of their intention to exit the pact, but Meloni refrained from making any public announcement during her recent visit to the US.
Meloni, while emphasizing the importance of maintaining a dialogue with Beijing, acknowledged that Italy's national interest requires a delicate balance when it comes to its trade relations with China. Despite the economic advantages promised by the Belt and Road Initiative, the government under Meloni's leadership is facing the challenge of extricating Italy from the alliance, which has so far yielded minimal economic benefits, without causing a diplomatic crisis with Beijing. She hinted at a possible future visit to China as part of her efforts to navigate this complex situation.
Defense Minister Crosetto criticized the decision to join the pact, attributing it to the "reckless and improvised action" of the previous government under Giuseppe Conte. He highlighted the stark disparity in trade between Italy and China, pointing out that while Italy had merely exported a symbolic shipment of oranges to China, Chinese exports to Italy have tripled over the past three years.
The comments from the defense minister are the clearest indication yet that Italy is moving towards terminating its involvement in China's Belt and Road Initiative. However, the delicate nature of the situation necessitates prudent decision-making to avoid any adverse consequences. Italy's future course of action may involve ending the agreement while maintaining a constructive relationship with Beijing.