New Opportunities Arise for China and Italy Amid China's Opening Up
Italian Prime Minister Giorgia Meloni's official visit to China is scheduled from July 27 to 31, 2024, coinciding with the 20th anniversary of the China-Italy comprehensive strategic partnership. Over the last two decades, the practical collaboration between the two nations has significantly broadened across various areas and levels, yielding successful outcomes.
TroibNews 
**Editor's note:** Professor Dr. Sun Yanhong is a senior research fellow at the Institute of European Studies, Chinese Academy of Social Sciences, and serves as the Secretary-General of the Chinese Society of Italian Studies. The views expressed in this article are those of the author and do not necessarily reflect the opinions of CGTN.
Italian Prime Minister Giorgia Meloni is embarking on an official visit to China from July 27 to 31, 2024. This marks her inaugural trip to China since she assumed the role of Prime Minister of Italy in 2022.
This year commemorates the 20th anniversary of the comprehensive strategic partnership between China and Italy. Over these two decades, robust cooperation has flourished, facilitated by frequent high-level exchanges, the issuance of three joint statements on their strategic partnership, and the signing of three comprehensive cooperation action plans. This engagement has led to significant advancements across various fields.
Meloni’s visit coincides with the conclusion of the third plenary session of the 20th Communist Party of China (CPC) Central Committee, which passed a resolution aimed at deepening reforms to further Chinese modernization. The resolution outlines specific strategies for extensive reforms and emphasizes promoting high-standard opening up.
The economic relationship between China and Italy is characterized by strong complementarity. Trade interactions over the past few decades have created a deep integration of interests between the two nations. In 2023, Italy ranked as China's fourth-largest trading partner in the European Union, while China stood as Italy’s largest trading partner in Asia.
China's commitment to deepening reforms and enhancing its openness is likely to pave the way for renewed practical cooperation between the two countries. This includes potential growth in two-way trade and increased momentum for mutual investments.
For Italian companies investing in China, the new opportunities created by China's opening will span both the manufacturing and service sectors. According to the resolution, there will be an expansion of the catalog of encouraged industries for foreign investment, a reduction in the negative list for foreign investment, and the removal of market access restrictions within the manufacturing sector. Italy, being the second-largest manufacturing country in Europe, excels in several areas including aerospace, automation, machinery, pharmaceuticals, and shipbuilding. The easing of restrictions in manufacturing will greatly benefit Italian firms.
Furthermore, China is set to enhance its openness in sectors such as telecommunications, internet services, education, culture, and healthcare. Italy offers distinctive competitive advantages in these service areas, and Italian companies could seize new business opportunities in China.
Italy is noted for having the highest aging population in Europe, leading to a well-developed elderly care service sector. As the issue of an aging population becomes increasingly significant in China, there is vast potential for Italian elderly care firms in the Chinese market.
One recurring topic in China-Italy economic relations has been the trade imbalance. The trend of increasing Italian services operations in China could address this disparity through service trade channels. In addition, with China's rapid advancement in digital technology and a robust talent pool in the digital realm, Italian businesses operating in China may find unique advantages in the ongoing digital transformation.
Regarding Chinese investments in Italy, despite the Italian government tightening its scrutiny on foreign direct investment (FDI) from China in recent years, there is an openness to welcoming greenfield investments from Chinese green industries, particularly in new energy vehicles and batteries. Reports indicate that the Italian Ministry of Enterprises and Made in Italy has engaged with several Chinese car manufacturers, such as Dongfeng and Chery, with the goal of attracting them to invest in electric vehicle production in Italy.
Minister Adolfo Urso's visit to China in early July also highlighted potential collaborations in the electric vehicle sector. In the drive to electrify the automotive industry, Italy needs to accelerate the setup of public charging infrastructure, an area where Chinese companies can provide valuable technology, high-quality products, and construction services.
Currently, Italy faces challenges in its economic recovery, while China is navigating a crucial transition toward high-quality development. Both countries are poised to achieve mutually beneficial outcomes by addressing geopolitical hurdles and enhancing economic cooperation. A series of cooperation agreements are expected to be signed during Meloni's visit, which will undoubtedly invigorate the ongoing collaboration between China and Italy.
Anna Muller contributed to this report for TROIB News
Italian Prime Minister Giorgia Meloni is embarking on an official visit to China from July 27 to 31, 2024. This marks her inaugural trip to China since she assumed the role of Prime Minister of Italy in 2022.
This year commemorates the 20th anniversary of the comprehensive strategic partnership between China and Italy. Over these two decades, robust cooperation has flourished, facilitated by frequent high-level exchanges, the issuance of three joint statements on their strategic partnership, and the signing of three comprehensive cooperation action plans. This engagement has led to significant advancements across various fields.
Meloni’s visit coincides with the conclusion of the third plenary session of the 20th Communist Party of China (CPC) Central Committee, which passed a resolution aimed at deepening reforms to further Chinese modernization. The resolution outlines specific strategies for extensive reforms and emphasizes promoting high-standard opening up.
The economic relationship between China and Italy is characterized by strong complementarity. Trade interactions over the past few decades have created a deep integration of interests between the two nations. In 2023, Italy ranked as China's fourth-largest trading partner in the European Union, while China stood as Italy’s largest trading partner in Asia.
China's commitment to deepening reforms and enhancing its openness is likely to pave the way for renewed practical cooperation between the two countries. This includes potential growth in two-way trade and increased momentum for mutual investments.
For Italian companies investing in China, the new opportunities created by China's opening will span both the manufacturing and service sectors. According to the resolution, there will be an expansion of the catalog of encouraged industries for foreign investment, a reduction in the negative list for foreign investment, and the removal of market access restrictions within the manufacturing sector. Italy, being the second-largest manufacturing country in Europe, excels in several areas including aerospace, automation, machinery, pharmaceuticals, and shipbuilding. The easing of restrictions in manufacturing will greatly benefit Italian firms.
Furthermore, China is set to enhance its openness in sectors such as telecommunications, internet services, education, culture, and healthcare. Italy offers distinctive competitive advantages in these service areas, and Italian companies could seize new business opportunities in China.
Italy is noted for having the highest aging population in Europe, leading to a well-developed elderly care service sector. As the issue of an aging population becomes increasingly significant in China, there is vast potential for Italian elderly care firms in the Chinese market.
One recurring topic in China-Italy economic relations has been the trade imbalance. The trend of increasing Italian services operations in China could address this disparity through service trade channels. In addition, with China's rapid advancement in digital technology and a robust talent pool in the digital realm, Italian businesses operating in China may find unique advantages in the ongoing digital transformation.
Regarding Chinese investments in Italy, despite the Italian government tightening its scrutiny on foreign direct investment (FDI) from China in recent years, there is an openness to welcoming greenfield investments from Chinese green industries, particularly in new energy vehicles and batteries. Reports indicate that the Italian Ministry of Enterprises and Made in Italy has engaged with several Chinese car manufacturers, such as Dongfeng and Chery, with the goal of attracting them to invest in electric vehicle production in Italy.
Minister Adolfo Urso's visit to China in early July also highlighted potential collaborations in the electric vehicle sector. In the drive to electrify the automotive industry, Italy needs to accelerate the setup of public charging infrastructure, an area where Chinese companies can provide valuable technology, high-quality products, and construction services.
Currently, Italy faces challenges in its economic recovery, while China is navigating a crucial transition toward high-quality development. Both countries are poised to achieve mutually beneficial outcomes by addressing geopolitical hurdles and enhancing economic cooperation. A series of cooperation agreements are expected to be signed during Meloni's visit, which will undoubtedly invigorate the ongoing collaboration between China and Italy.
Anna Muller contributed to this report for TROIB News
