Italy quietly withdraws from China’s New Silk Roads project

The Italian government has officially withdrawn from the major Chinese commercial project of the “New Silk Roads”, without publicizing it.

The adventure ended discreetly with a simple note verbale sent to the Chinese government. On one side or the other, no one wants to publicize this withdrawal, which nevertheless is not a surprise.

Even before her election, Giorgia Meloni believed that Italy had committed “a serious mistake” upon entering this oversized project nicknamed Belt and Road Initiativeintended to create new roads, new railways and new ports everywhere to revive China’s commercial activity with the rest of the world.

As the agreement expires next March, it was simply decided not to renew it pbecause it did not produce the expected effects. Qhen Italy joined the project, with great fanfare, in 2019, it hoped to boost its exports and take advantage of Chinese investments to pay off its debt, which at the time was colossal. But the announcement effects did not all materialize. Investments proved disappointing and exports increased by only 19%, while Chinese imports jumped by 71%.

“It was not an advantageous prospect“, said Antonio Tajani, the Minister of Foreign Affairs to the Repubblica. There are too many imbalances and negligible economic benefits, especially considering the political cost of a rapprochement with Beijing, qwhich put Italy a little at odds.

Especially since it was the only G7 country to participate. Suffice it to say that his allies were putting pressure on him. It is dIt’s hard to continue to justify a strategic alliance with a country that stubbornly supports Russia in its war in Ukraine, and a country with which the United States is at open war over trade issues. As the precise rules of the agreement were not very transparent, the Europeans feared seeing Rome become “a Trojan horse” Chinese interests. The opposition, however, denounced this distance, linked according to it to the very Atlanticist positions of the Meloni government.

“Denigration” of the New Silk Roads

In Beijing, the spokesperson for the Minister of Foreign Affairs denounced the “denigration” of the New Silk Roads, while the regime has just celebrated their tenth anniversary. But the criticisms have not risen any higher.

It must be said that, even within the Chinese political apparatus, some consider that the project does not meet its ambitions. Around 150 countries are participating, but many African states have already frozen the agreement, which exposes them to massive debt distress. This is one of the weaknesses of the New Silk Roads, namely creating a potentially dangerous financial dependence on Beijing.

This does not mean that Italy no longer has relations with China. Rome has no intention of offending the world’s second largest economy, because the Italian luxury sector would have too much to lose. No one wants a diplomatic confrontation that would be detrimental to economic interests. “This withdrawal should not mean a decisive end to bilateral relations“, already noted the daily Global Times, organ of the PCC, during the visit of the Italian Minister of Affairs Antonio Tajani in September 20023. President Matarella must even go to Beijing in early 2024 to detail the new strategic partnership that will unite the two countries. Perfect illustration of this Chinese proverb: “the door that is best closed is the one that can be left open”.