Italy has dropped out of China’s Belt and Road Initiative (BRI) more than four years after becoming the only G7 nation to sign up for the vast ambitious project, a government source said on Wednesday.
The decision, which has been long expected, was communicated to Beijing three days ago, according to Italian newspaper Corriere della Sera, which first broke the news.
Although neither side has published official communication on the matter, an Italian government source confirmed to AFP that Rome had pulled out.
The source added that the exit had been carried out in a way as to “keep channels of political dialogue open,” but did not give other details on the matter.
Italian PM Giorgia Meloni had long been opposed to her country’s participation in the Chinese initiative, which is viewed by many as an attempt to seize political and economic influence globally.
The project’s benefits for Rome were also viewed to be limited. Italian Foreign Minister Antonio Tajani said in September that membership in the initiative “has not produced the results [Italy was] hoping for.”
Italy's decision to pull out of China's Belt and Road Initiative has placed a spotlight on the relationship between the two countries and comes at an awkward time for Beijing, a day ahead of a summit it is holding with Europe. https://t.co/vqcwGYemka
— Nikkei Asia (@NikkeiAsia) December 6, 2023
Similarly, Italian Defence Minister Guido Crosetto said in July that his country’s decision to join China’s flagship infrastructure scheme had been a “wicked” act, which “led to a double negative result.”
However, China has previously countered that, in the first five months of 2023, Italian exports to China had observed a 58% year-on-year surge. It thus concluded that “tapping the potential” of the BRI “serves the interests of both sides.”
The deal was set for an automatic renewal in March 2024 unless Italy opted out by the end of this year.
However, Meloni and her hard-right government were also wary of provoking the Asian giant and risking retaliation against Italian companies. To this end, she told reporters at the G20 Summit in New Delhi in September that if Rome decided to leave the project, it “would not compromise relations with China.”
The European country had signed up to be part of the initiative in 2019, under the government of then-PM Giuseppe Conte.
Prior to taking office in October 2022, Meloni said the move had been a “mistake.”
The non-binding memorandum of understanding with China included broad undertakings for collaboration in the logistics, infrastructure, financial, and environmental sectors.