Listen to the audio version of the article
In the era of new global relations between China and the world, Ambassador Liu Jianchao is at the helm of the Chinese Communist Party’s international relations, the sector most sensitive to planetary dynamics. Italy is, and remains, crucial in Beijing’s map, as demonstrated by its presence in Milan where Liu Jianchao met the companies of the Italy China Council Foundation (Iccf), from Banca Intesa to Bracco, in a complex phase in which Italy must decide on the renewal of the MoU on the Silk Road signed in Rome in 2019. An event in which the Iccf launched the proposal to create a permanent bilateral dialogue mechanism on the economy with companies and institutions, able to hold stops the bar on the real interests of the two countries. In this exclusive interview with Il Sole 24 Ore, the minister confirms China’s expectations of the Italian economy. With a double, clear warning for the near future: «New political dialogues form new consensuses. The new economic cooperations create new dynamism».
China and Italy have a long tradition of mutual cooperation. How can the two countries revitalize this past?
The ancient civilization and millennial friendship have enabled China and Italy to build mutual respect, learning and trust wisely. In considering the historical legacy, inertia must be overcome and new strategic contents attributed to the China-Italy relationship. The new political dialogues form new consensuses. Exchanges between institutions, parties and local authorities are intensified, and coordination on the international agenda and within multilateral organizations is strengthened. The new economic cooperations create new dynamism. Cooperations are being strengthened in sectors such as port logistics, maritime transport, energy, telecommunications and pharmaceuticals, as well as in third markets. New cultural projects create new progress. The twinning between Unesco sites, the co-organization of art and cultural heritage exhibitions are strengthened, and exchanges between people are promoted in the name of Marco Polo’s legacy.
Surprisingly, during the pandemic, bilateral economic reports signaled a significant recovery. What can be the next destination?
China-Italy trade reached 120 million dollars in 1970, 10 billion dollars in 2003, more than 50 billion dollars in 2019, towards 80 billion dollars in 2022. The parameters show an exponential leap. Indeed, during the period of the pandemic, trade recorded record levels in three consecutive years. A growth that brings Italy among the first places in the EU. China is ready for a quantitative and qualitative upgrade of cooperation with Italy. We want balanced trade instead of surplus. China International Import Expo (Ciie) is the first national exhibition dedicated to imports. A market of 1.4 billion consumers means a huge opportunity. This year Italy has been highlighted as the guest of honor of the China International consumer product Expo. We are confident, from a perspective of bilateral cooperation.
Agriculture and rules on agri-food trade represent obstacles of the recent past that have been successfully overcome. What other restrictions could be considered?
As for access agreements to China for agri-food products, Italy is in first place in the EU. Recently, the two countries signed a protocol for the export of fresh Italian pears to China. China is becoming the largest market in the world and welcomes Made in Italy products. For bilateral cooperation, sectors such as manufacturing, clean energy, aerospace and third markets need to be strengthened; wind and photovoltaic energy, the new energy automobile are emerging areas; transnational e-commerce is a new economic form to be exploited. China is creating the favorable environment for Italian companies to invest in China, with the hope that Chinese companies in Italy will be treated fairly.
Italy remains an important protagonist in the European context, but in relation to China it seems to remain behind compared to other countries such as France and Germany. What can be done about this situation? What can China do?
For China, Italy is one of the first countries that historically established diplomatic ties in the West and the strategic partnership relationship in the EU, it is the fourth trading partner and the first tourist destination in the European Union. In all areas, Italy is at the forefront.
China is very keen on its relationship with Italy. We want to intensify high-level institutional exchanges, enhance bilateral mechanisms such as the China-Italy government committee, increase cooperation in various sectors in the Belt & Road Initiative. We believe that the China-Italy relationship is, as they say, a two-way rush. Let’s meet8 and elevate the bilateral relationship to a global strategic rank.
Italy in China has a lively business community, China in Italy boasts important economic interests. Are they two sides of the same coin? How is it possible to improve the context in which the companies of the two countries operate?
China-Italy trade and investments are growing steadily. This is good for businesses which are the cells of the economy. The Chinese economy is increasingly open and access to the market is increasingly unconstrained. The negative list of the manufacturing industry has been totally erased and that of the tertiary trade is comparable to that of the industrialized countries; the customs tariff fell below 7.4%; China’s business environment ranks 31st among 190 economic entities considered by the World Bank; the innovation index is in 11th place, according to the evaluations of the World Intellectual Property Organization. The intellectual property protection mechanism establishes the prohibition of forced technology transfer. The key to making Italian and Chinese companies grow is certainly to improve the business environment.