Italy set to join China’s Belt & Road Initiative

Analysts are waiting to find out if Xi will offer a modified version of the program to Italy to meet European standards; but adopting those standards would take away China’s ability to cut costs and reduce its competitive edge.

“I don’t expect China to show more flexibility. In any case; I don’t see financing terms as a real issue in Europe,” Amighini said.

European disunity

Teresa Coratella, program manager at the Rome office of the European Council on Foreign Affairs, said the Italian move has the potential of creating disunity in the European Union at a time when the coalition is working out a common approach toward Chinese investments.

Both the U.S. and France have expressed discomfort about Rome’s move, while German officials reportedly have been lobbying against the MOU signing. Italy, a member of the Group of Seven most industrialized countries, is the only G7 nation to join the BRI.

“Italy is a major global economy and great investment destination. No need for Italian government to lend legitimacy to China’s infrastructure vanity project,” tweeted Garrett Marquis, spokesman for White House’s group of national security advisors.

French President Emmanuel Macron has expressed unease about Rome’s decision, and he has called for a “coordinated approach” covering all European Union members toward Chinese plans.

“It’s a good thing that China is taking part in the development of many countries, but I believe in the spirit of equality, reciprocity. The spirit of equality means respecting the sovereignty of nations,” Macron said.

Lucrezia Poggetti, a research associate with Merics, the Berlin-based research institution, said Italy is the third-largest economy in the eurozone, and an Italian signature on the BRI has wide implications.

“Italy’s decision in itself is bad news for the EU and its largest members, who are currently trying to pursue a more unified European China strategy to address challenges with the economic and political weight of the EU bloc,” she said.

Rome’s attraction toward the BRI is not new. Former Italian Prime Minister Paolo Gentiloni was the only head of government among G-7 countries to attend the first meeting of the Belt and Road Forum in May 2017.

The current government would “go much further by officially endorsing an initiative that has been criticized internationally for, among other things, creating debt traps, political dependencies and promoting exclusively the interests of Chinese companies through unfair practices that don’t meet international standards and rules,” said Poggetti.

Zhiqun Zhu, who chairs the Department of International Relations at Bucknell University in Pennsylvania, said the United States is exaggerating the idea of a China threat in all issues, including the BRI plan.

“Italy and other countries should make their own decisions instead of being forced to choose sides between the U.S. and China,” Zhu said.

This article is published courtesy of the Voice of America (VOA)