New Silk Road in Italy: “We were just the puppets”

Status: 08/22/2023 08:03 a.m

In Italy, the China euphoria under Prime Minister Meloni has evaporated. The government is thinking loudly about exiting the “New Silk Road”. But that could be difficult.

Maurizio Rasero, the mayor of the city of Asti in Piedmont, has big plans. Asti signed a town twinning with the Chinese community of Nanyang in May, and the delegation went to the Chamber of Commerce immediately after the ceremony. At the end of July, Rasero gave an interview to the China Media Group in which he praised the People’s Republic beyond measure: “In my view, China has proven over the years that it has helped bring stability to the world, that it is a serious, credible partner without whom the world can no longer do.”

Asti is also in contact with the state-owned telecommunications group China Telecom. In a statement, the city remains vague, discussing the development of planning strategies to make the Piedmontese city known through smart technologies. China Telecom has been classified as a national security risk in the US.

In Italy, the opening of the city of Asti, which has a population of almost 74,000, to Chinese technology companies has only attracted attention in regional media. According to economics professor and China expert Alessia Amighini, this is entirely in the interests of the Chinese: nobody can criticize or block the cooperation. Amighini speaks of the “new China,” which means: “Few friends, I’m silent, I’ll keep going. If I don’t get caught, I’ll make it. But if they find out, I’m done for.”

“We have been the gift to Beijing”

The China euphoria of 2019 is gone. At that time, individual members of the Italian government from “Five Stars” and Lega praised the agreement signed between the two countries in March of that year, with which Italy joined the “New Silk Road” project.

It should give Italy new economic strength through more commitment from the Chinese and more export opportunities for Italian companies. But the memorandum did not help Italy, says Amighini: Italy continues to import more goods from China than vice versa.

Above all, the contract was of great strategic importance for Chinese President Xi Jinping. Because for him it was very important to show Washington that Italy would sign. “It was all just a game in which we were the puppets, and the two players were actually Washington and Beijing” – this is how the economics professor puts it. “And we’ve been the gift to Beijing to show Washington.”

decision before December

Three governments later, the political tide has turned in Italy. Prime Minister Giorgia Meloni is taking a pro-US foreign policy course. During the election campaign, the 46-year-old repeatedly stated that she would not support the Silk Road Agreement.

After her first visit to the White House in late July, she gave an interview to Fox News. Before December, Italy would decide on a possible exit, she said – but made it clear that she was critical of the Chinese system, in which companies have a completely different role than in Italy. “Our companies don’t have to give the data to the government if the government asks for it. And that makes all the difference.”

According to the party chairmen of Fratelli d’Italia, global trade can only be free if it is fair for everyone involved. “But then we have to consider that if we trade with someone who doesn’t say, ‘Follow the same rules!’ and who doesn’t have the same standards,” said Meloni.

“You’re in no hurry”

Should Italy draw the line, China’s reactions could be harsh. Politicians and experts alike are convinced of this. Amighini from the Asia Center of the Milan think tank ISPI thinks that the Chinese would then have to do something. Somehow they have to show “that we have a negative consequence from this,” she says. What exactly this will look like is still unclear.

In any case, the Italian government is already in a quandary. Should the memorandum end in 2024, that would not prevent China from expanding its political influence.

Cities like Asti – not far from the important port of Genoa – are perfectly chosen, says Amighini: With a smart city and the so-called repeaters, signal amplifiers, important strategic information can be recorded. According to the economist, the Chinese are taking the time they need to achieve their goal: “The most important thing is that you make progress. So they’re in no hurry.”

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