The Italian government has officially announced that it is leaving China’s Belt and Road Initiative (BRI). The agreement binding the two countries within BRI would end in March 2024. However, Italy informed the Chinese side that it would not renew it. Italian foreign minister Antonio Tajani commented that “the agreement did not produce the expected results and that the Silk Road is not Italy’s priority.” At the same time, he underlined that relations between Rome and Beijing will be strengthened despite this development.

Tajani also mentioned to the Italian media that Italy did not benefit as much as countries like Germany and France from the BRI. However, he was criticised for his statement, considering that BRI agreements are not universal but are different for each country. As a result, they also produce different dynamics and growth prospects.

Business vs politics

Italy leaving the BRI was one of Giorgia Meloni’s, the Italian Prime Minister, first public announcements when elected in late October 2022. The Italian government was not always united when it came to discussing this option, and the Italian business sector generally disapproved of it.

In an interview with RailFreight.com last August, Landry Fotso, COO of the Italian Society for Import Export, said that despite the government’s narrative that the BRI did not bring any benefits to Italy, companies operating Eurasian trains between China and Italy did experience benefits. For instance, he mentioned that services were considerably cheaper due to tax concessions on customs procedures that BRI members enjoy. He also hoped for the agreement’s renewal.

Numbers also do not lie. Italy’s exports to China last year accounted for 16,4 billion euros, while China’s exports to Italy reached 57,5 billion euros. Both figures have grown substantially since the first bilateral BRI agreement was signed in 2019.

Speculation around Italy’s definitive departure from the BRI sparked each time Meloni participated in high-level meetings, which could potentially serve as platforms to announce the country’s exit from BRI. Ultimately, after a year of discussions on the matter, the decision was finally made, and Italy is no longer a BRI member.