Italy seeks exit from China ‘belt and road’ deal

Meloni move expected to antagonise Xi as experts say initiative is ‘not compatible with pro-western stance’

ITALY has signalled it will withdraw from China’s Belt and Road Initiative, regarded by critics as a Trojan horse for Beijing to advance its interests.

Giorgia Meloni, the prime minister, told Kevin Mccarthy, the US House speaker, last week that while a final decision has not yet been made, her government wants to exit the deal.

The benefits to Italy of signing up to the worldwide infrastructure project, which was originally intended to link East Asia to Europe, have been few.

China had pledged modest investments in the ports of Genova and Trieste, “but even they did not materialise in full”, said Federico Santi, a senior analyst at Eurasia Group.

He said Beijing had recently stepped up its lobbying efforts to try to convince Rome to stay in the deal as it would be “a big loss symbolically for China”, adding: “This decision, if confirmed, will antagonise the Chinese government.”

Relations between Europe and China have become increasingly fraught over Beijing’s support for Russia in the Ukraine war.

Italy became the only G7 nation to sign up to the Belt and Road project in 2019, in a move criticised by Giuseppe Conte, the then prime minister. The accord was due to automatically renew in March 2024 unless Italy pulled out.

Stefano Stefanini, a senior adviser at the Institute for the Study of International Politics in Rome, said that if Italy did not withdraw, it risked causing a clash with the United States.

“Italy has to decide which side it is on,” he wrote in La Stampa, last week.

Remaining with the Belt and Road Initiative would be “a choice that is hardly compatible with Italy’s prowestern stance”, Mr Stefanini said.

The economic benefits of the scheme come with strings attached.

“The Chinese, who are born merchants, never give anything away for free – as many countries in Africa and Asia are finding out,” he said. There is no easy way to exit the accord without upsetting China and there will be “inevitable reprisals” by Beijing, Mr Stefanini added.

The move could be announced at the G7 summit in Japan next week.

Francesco Sisci, an Italian expert on China who is based in Beijing, said he was not convinced the Italians would rip up the accord. If they did, they would have to do so very carefully.

“It is crucial that Italy handles this with finesse,” he said. “The Chinese reaction will depend on how the Italians approach it. Knowing Italy and the Italians, they may decide it’s too difficult. They may extend it – it’s possible.”

Critics say the Chinese investment projects, now extended to Latin America, Africa and Oceania, are often a debt trap for unsuspecting countries,

So far, more than 140 nations have signed up to the scheme or are interested in doing so. But many have found themselves saddled with huge debts, including Pakistan, Zambia and Ghana. In Europe, there are fears that Beijing is using projects to win influence in the Balkans, investing in countries such as Serbia and Montenegro.