China makes new inroads into Europe
In his first foreign trip of 2019, Chinese President Xi Jinping visited three European countries – Italy, France and Monaco. The main focus was Italy where the government signed a memorandum of understanding with China to partner in the Belt and Road Initiative (BRI).
However the visits to France and Monaco were also productive – China inked a $34-billion (Bt1.08 trillion) deal with Airbus to buy 300 aircraft, while in Monaco a partnership agreement was signed between Monaco Telecom and Huawei to roll out 5G as part of its plan for smart city development.
With ports that offer easy gateways to Europe’s richest markets, Italy is a promising and prestigious prize for China and it is also the first G7 country to join the BRI.
The decision to join was however heavily criticised by both Washington and Brussels because of concerns that it would provide China with access to sensitive technologies and critical infrastructure. However within the Italian government were many advocates of strengthening the relationship with China who hoped this would help bring the country out of recession. Deputy Prime Minister Luigi di Maio, who heads the Five Star Movement, spearheaded the pro-Beijing thrust, by setting up a China Task Force within the government to drive forward the agreement.
Italy’s enthusiasm for the BRI stems in part from observing the successful development of Greece’s Piraeus Port, where China’s COSCO holds a majority share. Prime Minister Giuseppe Conte saw the potential of developing Italy’s ports in Trieste and Genoa as similar entry points for Chinese trade with Europe.
Another strong advocate of closer ties with China has been Italian Infrastructure and Transport Minister Danilo Toninelli. He called for Italy to play a leading role in the BRI to help the country to overcome its infrastructure and logistical shortcomings, beginning with the ports.
Like Thailand, Italy wants to develop its rail system so that it can reduce its reliance on road transport. As part of its commitment to the Belt and Road it is investing in rail facilities at major ports and adjusting its rail system to synch with international standards, giving China direct access to railways for moving its goods into the European Union.
The history of trade between the two countries goes back 1,000 years and indeed Italy’s national dish of pasta originally came from China, so prospects should be good for this next stage of development.
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