China in the spotlight at upcoming G7 Trade meeting in Italy

Rome: Balancing with China. Italian Deputy Prime Minister and Minister of Foreign Affairs, Antonio Tajani, emphasised that the upcoming Trade Ministers’ meeting in Reggio Calabria and Villa San Giovanni on July 16-17 will focus on addressing China’s controversial commercial practices. The goal is to engage in constructive dialogue amidst competing relations.

Minister Tajani emphasised that Italy views China as a competitor but is committed to maintaining constructive relationships.

The Meloni government decided not to renew the memorandum of understanding with China on the Belt and Road Initiative earlier this year. However, Minister Tajani explained that they made this decision thoughtfully, “without controversy or speaking ill of the initiative, which did not bring significant benefits”.

Minister Tajani also emphasised that all partnerships, particularly the 2004 global strategic partnership, remain intact and continue to strengthen cooperation. Additionally, he added that while China remains a competitor, it is still an important market for Italian businesses.

He noted that the upcoming visits from Prime Minister Giorgia Meloni and President Sergio Mattarella are intended to solidify these ties.

Reviving ties. As part of these efforts, Italian Minister for Business Adolfo Urso visited Beijing earlier this month. This was the first ministerial visit since withdrawing from the Belt and Road Initiative.

The mission aimed to realign Italy-China relations and explore new industrial synergies, particularly in green technology, electric mobility, and intellectual property.

However, these initiatives align with broader European Union trade policies and strategic autonomy.

The Italian government has taken a cautious approach to Chinese involvement in critical sectors, such as telecommunications, balancing national security concerns with the need to diversify suppliers.

The last G7 assessment. The G7 summit held last month also took a firm position on China, highlighting the importance of fair competition and addressing concerns related to cyber security, regional infringements, and the situation in Taiwan.

The summit’s final communiqué, which made 29 references to China, signals the growing emphasis on China’s geopolitical and economic influence.

Minister Tajani also reiterated the concept of fair competition in his comments, emphasising the significance of playing by fair rules in international trade. He stated, “In the global arena, when there is competition, we must intervene to safeguard production if anyone fails to adhere to the rules.”