Seeking to strengthen Sino-Italian strategic partnership
The Sino-Italian strategic partnership was established in 2004 and adjourned in September 2006 when the premiers of the two nations met in Beijing. The renewed partnership rests upon four pillars highlighting bilateral relations: economic cooperation, culture, environmental cooperation and healthcare.
Premier Wen Jiabao of China and Prime Minister Romano Prodi of Italy aimed to double the volume of economic trade in the next five years while progressively rebalancing it.
To achieve this, the Italian Ambassador came up with a catch phrase: "More Italy in China, more China in Italy", identifying the means through which bilateral trade can grow and mutual economic relations achieve progressive rebalancing.
By the end of 2006, initial progress was achieved. According to Chinese statistics, bilateral trade stood at $24.5 billion, growing by 32 percent on a yearly basis. Italian exports to China grew by 24 percent, standing at $8.6 billion.
Italy is the fifth largest overall EU trading partner for China, but it ranks the third in terms of EU exports to China. Chinese economic data for the first quarter of this year confirms this trend.
Overall trade stood at $6.7 billion, growing by 35 percent over the same period in 2006 and Italian exports delivered an outstanding performance, growing by 28 percent compared to the same period in 2006.
Given the fact that Chinese exports to Italy continue to grow as well, other means needs to be exploited as well to achieve the progressive rebalancing of bilateral economic relations.
Higher expectations
As the economic data shows - this is not enough to achieve the overall goal identified by the two premiers. Much still needs to be done.
First, economic relations between the small and medium enterprises (SMEs) need to be strengthened. Italy was chosen as the only foreign country to co-host the SMEs Fair held in Guangzhou last September.
The Italian prime minister opened the event, in which over 400 Italian SMEs participated, while a bilateral memorandum was signed to improve cooperation in this area.
Second, Italian enterprises have to be assured of support. A growing number of Italian groups participate in bids sponsored by the Chinese government and their interest is widening. Italian technology can be of reciprocal benefit.
Last, the two countries are engaged in establishing the necessary conditions to spur the flow of Chinese investments toward Italy. While Chinese exports to Italy continue to outpace that of Italy to China, the most effective means to achieve a rebalancing of economic relations will be allowing for more Chinese investments in Italy.
Chinese investments could firstly be directed to logistics and port cooperation. Italy can become China's gateway to Europe, North Africa and the Middle East.
Chinese groups such as COSCO have expressed interest vis--vis Italian ports. Exploiting this route through the Suez Canal can save considerable sailing days for the Chinese shipping industry.
Chinese investments in other sectors, including automotive, telecommunications, tourism and food industry, are expected to make progress.
(China Daily 06/05/2007 page27)
