Italy has long been a significant trading partner for China in Europe, and China has become an important market for Italian goods and investments. Despite increased competition in areas like fashion and machinery, where Italy has historically excelled, their bilateral relationship remains strong. This evolving dynamic may influence broader European perspectives on China, given Italy’s strategic role within the EU-China framework.
Historically, Italy and China have had deep cultural and trade connections dating back to ancient times when Chinese silk reached Italy. Diplomatic relations were officially established in 1970, and in 2004, the partnership was elevated to a comprehensive strategic level. A significant milestone came in 2019 with Chinese President Xi Jinping’s visit to Italy, during which key agreements, including a memorandum on the BRI, were signed.
Recent changes occurred when Italy withdrew from the BRI in late 2023. This decision, led by Prime Minister Meloni, reflects Italy’s reassessment of the benefits of participating in China’s global infrastructure initiative. Despite this withdrawal, the bilateral relationship has remained stable, with continued high-level engagements. Meloni’s visit to Beijing in July 2024 included signing a three-year action plan to strengthen cooperation in trade, investment, education, environmental protection, and food security.
Italy is a major trading partner for China, ranking second in Asia and third overall after the US among non-EU countries. Italian exports to China have grown in 2024, though the trade imbalance has widened. Italy’s exports include industrial goods, pharmaceuticals, and automobiles, while China supplies computers, electronics, textiles, and electrical equipment to Italy.
Both countries are active in investments. Italian foreign direct investment in China reached 15.5 billion euros in 2023, while Chinese investment in Italy has declined despite interest in specific sectors like logistics and automotive manufacturing.
The bilateral investment and double taxation agreements between Italy and China create a stable and predictable investment environment, supporting their economic partnership.
In 2024, Italy aims to enter a new phase in its relationship with China, focusing on high-value sectors and expanding strategic ties in the Indo-Pacific region, while balancing its regional partnerships with ongoing engagement with China.
