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Italy says China trade deal not meeting expectations

A controversial investment deal with China has failed to meet Italian expectations, Rome's top diplomat said on Saturday ahead of a visit to Beijing, as speculation mounts that Italy will withdraw.

Italy's Foreign Minister Antonio Tajani addresses a conference in London in June 2023.
Italy's Foreign Minister Antonio Tajani addresses a conference in London in June 2023. Ahead of a visit to Bejing, he has said that Italy's trade deal with China is not meeting expectations. Photo: HENRY NICHOLLS / POOL / AFP

In 2019, the highly indebted economy became the only nation from the G7 club of industrialised countries to take part in China’s Belt and Road Initiative.

Chinese President Xi Jinping’s ambitious programme, consisting of massive investments in infrastructure like ports, railways and airports, aims to improve trade ties between Asia, Africa and Europe.

Critics say the plan is a Trojan horse to increase Beijing’s influence.

The deal is due to be renewed automatically in March 2024 unless Italy withdraws this year.

“We want to continue to work closely with China, but we must also analyse exports: the Belt and Road Initiative has not produced the results we were hoping for,” Italian Foreign Minister Antonio Tajani told an economic forum.

He said Italian exports to China in 2022 were worth 16.5 billion euros ($17.8 billion), whereas the figures for France and Germany were much higher at 23 billion and 107 billion euros respectively.

Tajani will meet Chinese authorities during his trip to Beijing from Sunday to Tuesday and prepare a planned visit by Prime Minister Giorgia Meloni that some experts believe will confirm Italy’s exit from the deal.

The withdrawal “has likely already been agreed in principle with Chinese authorities”, Lorenzo Codogno, a former chief economist at the Italian treasury, said in a note.

Meloni “will make the official announcement during her state visit to Beijing, expected by mid-October, as a sign of respect for China’s leadership”, but the Italian parliament will have the final say, he added.

Meloni’s predecessor Mario Draghi froze the agreement and blocked large-scale Chinese investment in sectors deemed of strategic importance.

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WAR IN UKRAINE

Italy says Russia media ban cannot erase effects of ‘illegal war’

Italy on Tuesday condemned Russia for blocking access to dozens of European media outlets, saying it would not erase the effects of a "violent, devastating and illegal war" in Ukraine.

Italy says Russia media ban cannot erase effects of 'illegal war'

The foreign ministry described the ban as “unjustified”, saying the Italian outlets affected – the broadcasters RAI and La7 and newspapers La Repubblica and La Stampa – had “always provided objective and impartial information on the Ukraine conflict”.

It said Russia’s attacks in Ukraine against civilians, cities and the energy network “will not be erased by the bans imposed on media and journalists in Italy and around the world who continue to follow devastating and inhumane activities with professionalism and independence”.

READ ALSO: Italy warns against ‘rash’ moves over arms to Ukraine

“The decision of the Russian Federation is one that does not remove or lessen the effects of a violent, devastating and illegal war,” it said.

Italy this year holds the rotating presidency of the G7 group of wealthy nations.

Russia said on Tuesday that it was blocking access to dozens of European media outlets, including AFP websites, in response to an EU broadcasting bans on several Russian outlets imposed last month.

The announcement comes after the European Union unveiled a ban on four Kremlin-controlled media outlets in May, accusing them of being “instrumental in bringing forward and supporting” Moscow’s Ukraine offensive.

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