Recently, Italian officials signaled a potential shift in how Rome engages with China on major infrastructure and trade projects. The government indicated that it could withdraw from the large investment agreement with Beijing before the year ends, a move that would mark a significant recalibration of Italy’s economic and diplomatic posture. In discussions held in Rome with a top US lawmaker, the presiding Italian prime minister conveyed that the final decision remains undecided as authorities weigh the evolving geopolitical landscape and the state of bilateral ties with Beijing. The mounting tensions between Rome and some Western allies are shaping the dialogue inside the Italian corridors of power, where policymakers assess benefits against potential strategic costs of deepening ties with China.
Italy remains the lone G7 member among its peers to have joined the Belt and Road Initiative, the expansive program known as the New Silk Road. Argentina, Canada, the United States, Germany, France, and Japan, along with the United Kingdom, have had varying responses, but Italy has carried a different organizational footprint within this framework. The Belt and Road partnership seeks to create a vast network of trade corridors and logistic hubs spanning Asia, Europe, and beyond, with the aim of facilitating cross-border flow of goods and travelers through integrated transport and logistics infrastructure.
Specifically, the New Silk Road concept envisions a pan-Eurasian transport system that China promotes in collaboration with partner countries such as Kazakhstan and Kyrgyzstan, among others. The objective is to streamline land-based routes for the movement of goods and people from China toward European markets, leveraging rail, road, and other overland corridors to reduce transit times and expand commercial access. The agreement signed in 2019 between China and Italy marked a formal moment of engagement, an official ceremony attended by Italian Prime Minister Giuseppe Conte and Chinese President Xi Jinping, underscoring the aspirational nature of bilateral cooperation at the time.
Bloomberg and other financial and political observers have noted that Italy’s openness to working with China has sparked concern among the United States and European Union officials. Critics worry that Beijing could gain footholds in critical Italian infrastructure, including telecommunications networks and port facilities. In this context, discussions in Washington and Brussels have often centered on national security considerations, supply chain resilience, and the broader implications for Western regional influence, should deeper cooperation with China influence strategic sectors in Italy.
In parallel, Xi Jinping has been engaging with other major regional players to sustain momentum for what he has described as a multilateral, high-profile platform for international dialogue. In a recent meeting, the Chinese president reaffirmed invitations to key leaders to participate in high-level events, noting that this year’s installments of the Belt and Road forum would continue to bring together government representatives, business leaders, and scholars. The emphasis remains on maintaining dialogue and exploring practical outcomes, even as Western reservations persist. Notably, discussions between Xi and leaders from Russia have highlighted the broader geopolitical contours of Eurasian cooperation, with Moscow and Beijing signaling a shared interest in advancing infrastructure and trade connections across vast geographic regions. The evolving dynamic shapes how policymakers in Europe and North America view the horizon for cross-border collaboration, investment security, and the resilience of supply chains in the years ahead. (Bloomberg)