Italy to withdraw from China's Belt and Road initiative: Report
What's the story
Italian Prime Minister Giorgia Meloni has privately informed Chinese Premier Li Qiang of her country's intention to withdraw from Beijing's Belt and Road Initiative (BRI), Italian media reported, per Reuters.
The development took place on Saturday during a meeting of the two leaders on the sidelines of the G20 Summit in New Delhi.
Italy's exit could significantly impact China's signature infrastructure project and relations with Europe. Notably, Italy is the only G7 nation to have signed up for the BRI.
Details
Meloni fears trade retaliation from China
According to Bloomberg, Meloni cautiously communicated her government's decision to exit the global infrastructure pact, fearing trade retaliation from China.
The issue is considered sensitive, especially as China's ambassador to Italy had warned of "negative consequences" if it exited the agreement.
"Italy and China share a Global Strategic Partnership whose 20th anniversary will recur next year and which will be the beacon for the advancement of friendship and cooperation," Meloni's office said in a statement after her meeting with Li.
Impact
Italy's exit might influence other countries
Italy was the first G7 member to sign up for the Belt and Road Initiative in 2019.
Now, its potential exit could also impact China's relations with Europe, as Italy is one of China's closest allies in the region.
However, China has reportedly downplayed the significance of the exit, stating that it is not a major setback for the initiative.
Italy has the G7 Presidency next year, and recasting its relationship with Beijing would placate its Western allies.
Insights
Italy seeks to maintain friendly ties with China
Despite its decision to exit from the BRI, Italy plans to maintain friendly relations with China.
Meloni has said that the country will continue to engage with China on issues of mutual interest and is committed to promoting trade and investment ties.
The Italian PM reportedly also plans to visit China soon to strengthen a strategic partnership agreement signed in 2004 for economic cooperation.
However, the Italian government will need to tread carefully to avoid any negative consequences from China.
About
What is BRI project
The BRI, also known as the One Belt, One Road Initiative, is a massive global development venture initiated by China in 2013 to revive the historic Silk Road.
China intends to build crucial infrastructure like ports, bridges, and rail lines across more than 150 countries in Asia, Africa, and Europe.
Although China claims that it is solely an economic project, some countries, like India, disagree.
Opposing nations are apprehensive that the project could widen China's influence and trigger huge debts.