A new era in China- Italy relations: the MoU on cooperation within the framework of the “Belt and Road Initiative”

As part of the “Belt and Road Initiative” (BRI), the ambitious plan adopted by the Chinese Government for a global economic development, on March 23, 2019, China and Italy have signed numerous agreements and a Memorandum of Understanding (MoU) on their cooperation within the framework of the “Economic Silk Road” and the “Initiative for a 21st Century Maritime Silk Route” aimed at strengthening the cooperation between the two countries.

The parties, represented by the highest levels of their respective Governments (Chinese President Xi Jinping and Italy’s Prime Minister Giuseppe Conte) as well as by other Ministries, have signed a total of 29 intergovernmental agreements (10 of economic nature and 19 inter-institutional agreements, including the MoU), worth 5 to 7 billion euros.

Such an important amount of investments will regard various economic sectors, specifically designed by the parties in the MoU. In particular, the cooperation will focus on six aspects:

(i)    the dialogue on policies, especially with regard to connectivity, technical and regulatory standards;

(ii)   transport, logistics and infrastructures. To this end, the parties will collaborate for the improvement of customs clearance procedures, and also for the financing of a sustainable, secure and digital transport;

(iii)  commerce and investments. China and Italy will cooperate for the development of their bilateral commercial relations, with the aim to foster an open investment system while opposing to unilateralism and protectionism;

(iv)  financial collaboration, with the institution of a high-level dialogue between the Chinese and Italian Ministries of Finance;

(v)   people-to-people connectivity, with the development of a cultural and scientific exchange system able to improve the dialogue between Italian and Chinese administrations, students and universities;

(vi)   finally, parties will cooperate to ensure a “Green Development”, protecting environment and fighting against global warming.

The signature of these agreements marks an important moment in the history of the relations between China and Italy, the latter becoming the first G7 country to officially adhere to the global Chinese initiative.

Overall, the agreements signed can hopefully strengthen the attractiveness of Italy and Italian companies to Chinese investors. Despite the opinions of some commentators, they line up perfectly with the European economic system and the European Union Law, as it is highlighted by the reference to the Strategy for the Connectivity between Europe and Asia made in the premises of the MoU.

As the Italian President of the Republic, Mr. Sergio Mattarella, explained, the Memorandum and the related agreements stand as a key point in the “culture of growth” shared between the two countries and can hopefully enable global sustainable growth.

Centuries after the fortunate journeys of the famous Venetian explorer Marco Polo, China and Italy become closer than ever before. These agreements surely represent the beginning of a whole new era in the relations between the two countries.

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