BEIJING, April 17 (Reuters) - China is willing to work with Italy to tap into the "potential" for economic and trade cooperation, Commerce Minister Wang Wentao told Italian Deputy Prime Minister and
China touts Italy trade ties even as data casts doubt on rebalancing plan
China-Italy Trade Relations and Economic Rebalancing
By Joe Cash
BEIJING, April 17 (Reuters) - China touted closer trade ties with Italy during talks with its visiting deputy prime minister, even as official data showed Beijing’s surplus with the euro zone economy has continued to widen and a 2027 deadline to "rebalance" ties approaches.
Trade between the world's second-largest economy and Europe's third-biggest market has topped $70 billion in each of the past five years.
The trade partners agreed the rebalancing effort during a 2024 visit by Italian Prime Minister Giorgia Meloni after Italy quit China's flagship 'Belt and Road' programme, partly because of insufficient Chinese investment to offset the trade gap.
Diplomatic Statements and Cooperation Potential
"China is willing to work with Italy to further tap into the potential for cooperation," Commerce Minister Wang Wentao told Antonio Tajani on Thursday, his ministry said in a summary.
"Italy is expected to play a constructive role in promoting the healthy and stable development of China-European Union economic and trade relations," Wang added, in a nod to Rome's key role for Beijing's dealings with the 27-nation bloc.
Trade Surplus Trends
Widening Trade Gap
TRADE SURPLUS HAS WIDENED, CHINESE CUSTOMS DATA SHOWS
But Chinese customs data shows the trade surplus with Italy has only widened over the past three years, with its exports of $51 billion last year up from $45 billion in 2023, while imports from Italy slipped to $25 billion from $27 billion.
Key Export and Import Categories
China's top export to Italy last year was smartphones, of which it sold $2.5 billion, followed by low-value consignments at $2.3 billion, typically consisting of cheap items from e-commerce platforms such as Temu and Shein.
Medicines and handbags account for Italy's biggest sales in China, although demand for luxury items appears to be slowing as the Chinese economy struggles to build momentum.
Perspectives on Economic Balance
Italian Views on Rebalancing
"It is essential to continue along a path towards a more balanced economic relationship," Tajani told state-owned China Daily in an interview published on Friday.
He singled out fashion, machinery, pharmaceuticals and chemicals as potential growth areas.
Geopolitical Context and Future Outlook
Italy’s Belt and Road Involvement
KICKING THE CAN DOWN THE ROAD
Italy was the only member of the Group of Seven nations to sign up to the BRI, pursuing membership despite appeals by the United States to steer clear of Chinese President Xi Jinping's main foreign policy programme in 2019.
Geopolitical Implications
From Beijing's perspective, that raises the prospect of Italy again diverging from Washington and its EU counterparts, particularly as differences over the Iran war have recently strained ties between U.S. President Donald Trump and Meloni, one of his closest European allies.
Diplomatic and Economic Strategies
Analysts said Meloni's 2024 visit and the adoption of the action plan helped China soften the diplomatic embarrassment after Italy's withdrawal from the Belt and Road programme.
But with the plan's 2027 deadline looming, China is in the spotlight to meet targets and fend off European accusations that it is delaying reshaping its economic model, in the struggle to revive domestic demand and lean on exports of cheap goods.
Automotive Sector and Tariffs
Rome backed European Commission‑proposed tariffs in a bloc‑splitting 2024 vote, aiming to avert a "flood" of Chinese electric vehicles Brussels had warned against.
But it has signalled it would welcome more sales by Chinese automakers investing in manufacturing in Italy.
(Reporting by Joe Cash; Editing by Himani Sarkar and Clarence Fernandez)
