According to an Italian official, the Memorandum of Understanding (MOU) between China and Italy on the initiative to promote the Belt and Road Initiative (BRI) will be a “promotion tool” for increasing bilateral trade and investment.
Michele Geraci, deputy secretary of state for the Italian Ministry of Economic Development, said the deal would help narrow the gap between Italy and other European countries in China’s exports and Chinese investment.
“Italy’s exports to China amounted to 13 billion euros, while France’s exports reached 20 billion euros. The memorandum of understanding is expected to be first converted to an additional trade volume of 7 billion US dollars,” said a speech at Fudan University in Shanghai on Tuesday.
He said that increasing exports to China is crucial to the Italian economy, which is the main driver of Italy’s growth over the past year.
Geraci also pointed out that Chinese investment has grown after reaching a level comparable to that of Europe at the same scale.
China and Italy signed a memorandum of understanding during the visit of President Xi Jinping in March to promote the construction of BRI.
Both parties talked about the potential of the initiative to promote connectivity, and both are expected to strengthen the coordination of BRI and trans-European transport networks.
According to the joint communique issued last month, China and Italy are expected to further strengthen cooperation in ports, logistics and shipping.
Geraci said the memorandum of understanding will give Italy a first-mover advantage in its engagement with China.
“We are leading the EU. This is a step towards a favorable direction for our country and people,” he said.
In addition to trade and investment, the memorandum of understanding also covers green energy, agriculture and civil communications, he said.
He said that 20-25 Italian startups will stay in the Chinese incubator for six months this year. They will cooperate with their Chinese counterparts to jointly develop products and find new financing channels.
