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Meloni makes first visit to China

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Italy seeks to mend ties after exiting Belt and Road

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Rome, Beijing to cooperate on EVs, renewable energy

By Giselda Vagnoni and Laurie Chen

ROME/BEIJING, July 28 (Reuters) - Italian Prime Minister

Giorgia Meloni vowed on Sunday to "relaunch" cooperation with

China, signing a three-year action plan during her first

official visit to Beijing since taking office.

Meloni, who has led a right-wing government since 2022, made

the announcement during a meeting with Chinese Premier Li Qiang,

as Rome seeks to improve trade ties with Beijing after it exited

President Xi Jinping's flagship Belt and Road infrastructure

investment scheme last year.

The Italian leader said her five-day trip was a

"demonstration of the will to begin a new phase, to relaunch our

bilateral cooperation". The action plan aims to experiment with

new forms of cooperation, she added.

Later in the day Meloni said that an industrial cooperation

memorandum signed by Italy and China includes strategic

industrial sectors such as electric mobility and renewables.

Li Qiang pointed to "mutually beneficial cooperation between

small and medium-sized enterprises in the fields of

shipbuilding, aerospace, new energy, artificial intelligence,"

in a statement released by his office.

Meloni, who sees Chinese investment as a way to spur Italy's

anaemic economic growth, will meet Xi and China's top

legislator, Zhao Leji, third in the leadership hierarchy.

On Sunday, Meloni also attended an Italy-China business

forum, to which companies including Italian tyre-maker Pirelli,

energy group ENI, defence group Leonardo, wine producers and

several Italian luxury fashion groups such as Dolce & Gabbana

were invited.

The forum gives "another signal of the mutual interest ...

(to) balance more our interests, our commercial exchange," she

said. Meloni is expected to raise Chinese overcapacity with

Chinese officials, as well as Chinese economic support for

Russia in its war with Ukraine.

"China and Italy should adopt a win-win mentality and

increase trade and investment cooperation, making cooperation

even more dynamic and sustainable," said Li at the opening of

the forum, according to a video shared by Meloni's office.

'CLARIFYING MISUNDERSTANDINGS'

In 2019, Italy became the only Group of Seven country to

join the massive Belt and Road Initiative but withdrew last year

under U.S. pressure over concerns about Beijing's economic

reach.

Meloni's government said the deal had brought no benefits to

Italy, whose trade with China - worth 66.8 billion euros ($80

billion) in 2023 - is heavily tilted in Beijing's favour. China

is Italy's biggest non-EU trading partner after the U.S.

Chinese state media said the trip was aimed at "clarifying

some misunderstandings" over Italy's withdrawal from the Belt

and Road and stressing the importance of economic ties.

The Italian government is holding talks with Chinese

automakers as part of efforts to attract another major

manufacturer to the country in addition to Stellantis ( STLA )

.

Speaking at the Business Forum, Meloni said the industrial

cooperation memorandum signed by Italy and China "includes

strategic industrial sectors such as electric mobility and

renewables" and called on Beijing to share "the new frontiers of

knowledge with its partners".

The protection of geographical indications, food safety, the

environment and education were the focus of other framework

agreements.

Italian foreign direct investment in China totals 15 billion

euros ($16 billion), and more than 1,600 Italian companies are

active, especially in textiles, mechanical engineering,

pharmaceuticals, energy and heavy industries.

However, Italy supported the European Commission's decision

to impose provisional tariffs of up to 37.6% on electric

vehicles imported from China. Beijing reacted angrily and has

launched retaliatory investigations into European brandy and

pork.

G7 members, including Italy, pledged last month to continue

to protect their businesses from what they consider unfair

Chinese trade practices.