Italy, China reach wide-ranging economic pact

ROME — Italy signed a memorandum of understanding with China on Saturday supporting Beijing’s “Belt and Road” initiative, which aims to weave a network of ports, bridges and power plants linking China with Africa, Europe and beyond.

With the move, Italy becomes the first member of the Group of Seven major economies, which includes the United States, to join the Belt and Road program, following Portugal’s embrace of the initiative in December.

Italian Premier Giuseppe Conte and Chinese President Xi Jinping attended a ceremony in Rome where 29 separate protocols of the memorandum were signed by both governments in front of the flags of China, Italy and the European Union.

Luigi di Maio, the Italian minister of economic development, told reporters afterward that his country’s goal is to increase exports to China to correct trade imbalances and boost Italian businesses and the country’s troubled economy. He said the value of the individual deals signed Saturday amounts to $2.8 billion, with the potential to grow to $22.6 billion.

“Our goal with these accords is to start to rebalance an imbalance for which there is a lot of ‘Made in China’ coming to Italy and too little ‘Made in Italy’ that goes to China,” Di Maio said.

Italy’s move appears to also be driven by hopes that Chinese investment in Italy’s ports might help revive the country’s traditional role as a key link in trade between the East and West.

The signed accords are wide-ranging and include cooperation between banks, between a Chinese construction company and Italian ports, and the export of Italian fruit to China. The deals also foresee cooperation in the spheres of science and technology and between media outlets, plus the return by Italy of hundreds of Chinese cultural treasures.