Italy Withdraws from China’s Belt, Road Initiative
Italy has officially withdrawn from China’s massive Belt and Road infrastructure initiative, over four years after becoming the only G7 country to join the project.
The withdrawal was announced without providing any details about the reasons for the decision, according to Reuters, Al Jazeera ”
Economic Disparities, Strategic Reconsideration
Italy withdrew from the BRI due to economic disappointments and strategic reassessments. After three recessions in a decade, Italy joined the BRI hoping to boost investment and exports to China. However, the economic benefits were less than expected.
Italian exports to China modestly increased from 14.5 billion to 18.5 billion euros post-BRI. In contrast, Chinese exports to Italy soared from 33.5 billion to 50.9 billion euros, creating a significant trade imbalance.
Additionally, Chinese investments in Italy didn’t grow as anticipated. Chinese FDI in Italy declined sharply from $650 million in 2019 to just $33 million in 2021. This decline showed that BRI membership didn’t ensure higher trade and investment from China.
Background
In 2019, Italy became the first Group of Seven (G7) nation to join China’s Belt and Road Initiative (BRI). A global infrastructure project reminiscent of the ancient Silk Road trade routes.
This ambitious initiative aimed to build massive infrastructure like roads, bridges, and ports to connect Europe and Asia. However, after more than four years of participation, Italy has officially withdrawn from the BRI.
Political, International Relations
Prime Minister Giorgia Meloni, a pro-NATO advocate, aims to strengthen Italy’s ties with its traditional allies. Italy’s exit from the BRI aligns it closer to the U.S. and G7 nations, concerned about China’s influence via the BRI.
Italy intends to keep positive relations with China despite leaving the BRI. This intention is evident from Foreign Minister Tajani’s Beijing trip and scheduled visits of President Mattarella and PM Meloni to China.
Italy’s BRI departure marks a major shift in its foreign policy, balancing economic and strategic partnerships. It mirrors a wider European and global reassessment of the BRI’s benefits and strategic effects.
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