Exiting the Stage: Italy Leaves the "New Silk Road" Project
With much fanfare, Italy's then-prime minister Giuseppe Conte and China's head of state Xi Jinping sealed a significant agreement in March 2019. The agreement marked Italy as the first major Western country to join China's ambitious "New Silk Road" infrastructure project. Fast forward four and a half years later, and this once grandiose agreement now appears to be drawing to a quiet conclusion.
Recent Italian media reports suggest that Rome has issued a diplomatic note officially withdrawing from the project, although no official confirmation was given by the Italian government or its current prime minister, Giorgia Meloni. Despite the silence, her foreign minister, Antonio Tajani, acknowledged that the "New Silk Road" had not yielded the hoped-for results, pointing out that its effects had not been as beneficial as initially anticipated.
China's global investment and infrastructure extravaganza
Conceived ten years ago, the "New Silk Road" is neither a new nor modest venture by China. It represents a substantial global investment and infrastructure initiative, with a variety of land and maritime projects forming part of its "Maritime Silk Road." The Chinese, already the world's second-largest economy, see this endeavor as an opportunity to open new trade routes and boost their worldwide presence.
Italy, saddled with chronic debt, found itself in the crossfire of criticism from its Western partners for joining the project. At the time, it was the only G7 member and the only major EU country to participate in the initiative. The reasons for Italy's involvement were primarily better export opportunities, investment prospects, and the desire to attract more Chinese tourists.
Investment, Infrastructure, and International Relations
Binding the perceived benefits of the "New Silk Road" to Italy's participation in the project, the country's aim was to stimulate its flagging economy and position itself as a continental hub of Chinese commerce. Critics, however, contend that this cooperation further prolongs Italy's dependency on China.
Moreover, there are potential repercussions for the European Union and NATO. In both organizations, Italy's involvement has been viewed with increasing concern as a misstep and a security risk. The general objective is to promote economic self-sufficiency and reduce dependency on China.
As the EU and NATO have voiced their concerns about the potential for China to dominate critical sectors, commission president Ursula von der Leyen and council president Charles Michel have warned that the EU may impose trade restrictions, such as special tariffs, should China continue to engage in unfair subsidy practices and close its market to European companies.
China's evolving global strategy
With Italy's departure from the project, there's no denying that China will experience a decrease in global influence, specifically in Europe. The same holds true for the G7, a significant diplomatic and economic bloc. Furthermore, over 150 nations currently participate in the "New Silk Road," including Russia and Serbia.
China's "New Silk Road" is a multifaceted, ambitious endeavor that initially aimed to stimulate international trade. Beijing has invested nearly a trillion euros to build infrastructure projects in developing countries, including airports, seaports, roads, and railways. However, critics argue that many of these nations are becoming increasingly dependent on China due to mounting debts.
In conclusion, the withdrawal of Italy from China's BRI initiative implies a shift in global strategic alliances and potential economic repercussions. Other nations may reassess their involvement in the BRI based on Italy's experience, and the EU and NATO could focus more on alternative infrastructure projects, countering China's influence in the region.
