Italy has formally announced its withdrawal from China's Belt and Road Initiative (BRI) by not renewing the 2019 memorandum of understanding (MOU) regarding its participation. The MOU, signed during President Xi Jinping's state visit to Italy in March 2019, was seen as a symbolic gesture to enhance China's global image as a provider of public goods. However, the MOU was controversial, causing concerns in Washington and other European capitals. Italy's decision to withdraw aligns with growing tensions between the US, EU, and China. The move weakens China's argument that the BRI has broad global support and highlights its challenges. Italy's withdrawal sends a symbolic message and confirms its alignment with the transatlantic posture on China.
Italy's decision to leave the BRI aligns with Prime Minister Meloni's commitment to NATO and her assurance to U.S. President Joe Biden that Italy would quit the initiative. The move is seen as a significant setback for China, as Italy is the first G7 country to withdraw from the BRI. It reflects Italy's desire to recalibrate its relationship with China and align more closely with its European allies and the United States. The withdrawal is expected to have implications for Italy's economic ties with China, as well as its broader geopolitical positioning.
Italy's withdrawal from the BRI does not appear to have soured relations between Italy and China or damaged the Italian economy. Italian exports to China have not seen significant growth, while Chinese exports to Italy have risen. Italy's main euro zone trading partners, France and Germany, exported more to China last year despite not being part of the BRI. Italy has also signaled its doubts about the pact by vetoing proposed takeovers and limiting the influence of Chinese companies over Italian counterparts.
This development presents a challenge for China's BRI, which aims to expand its economic and political influence globally. Italy's withdrawal highlights concerns about the lack of tangible benefits for participating countries and the potential for unequal trade relationships. It also underscores the need for China to address these concerns and demonstrate the value of the BRI to its partners. The withdrawal of Italy from the BRI signals a shift in geopolitical alignment and raises questions about the future of China's ambitious initiative.
