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Xi Takes Rome

Mar 21, 2019

Chinese President Xi Jinping is expected to return from his March 21-24 visit to Rome with a Memorandum of Understanding codifying the Italian government's endorsement of his “Belt and Road Initiative.” But Paola Subacchi and Lucrezia Poggetti both wonder if Italy’s leaders really understand what they’re getting into.

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B Wilds Mar 25, 2019

In what could be considered an appalling move the Italian Prime Minister signed a historic memorandum of understanding with Chinese President Xi Jinping Saturday morning in Rome. The agreement made Italy the first founding EU member, and the first G-7 nation, to officially sign on to Beijing's "One Belt, One Road" (OBOR) economic development initiative.

For Italy, this appears an "any port in a storm" situation. Italy struggling with a high level of debt and a stagnate economy has found the EU less than supportive and lacking answers as to how they might kick-start growth

The ramifications flowing from Italy's deal with China may, in the end, prove to be a deal with the devil that opens the floodgates that washes away much of the EU and breaks the euro. The article below delves into the current deal.

https://brucewilds.blogspot.com/2019/03/italy-picked-off-by-china-folly-of-it.html
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j. von Hettlingen Mar 22, 2019

Ahead of Xi Jinping’s visit to Italy this weekend, Paola Subacchi and Lucrezia Poggetti criticise the coalition government in Rome for seeking short-term gains by endorsing their country’s participation in China’s $1 trillion ambitious Belt-and-Road Initiative (BRI). The Five Star Movement (M5S), the populist party governing alongside the far-right League, has been the driving force behind the country’s business venture.
Italy would be the first G7 nation to collaborate in an initiative the US believes is being used by China, its main trade rival, to expand its political and strategic clout, rattling its EU allies and the Trump administration. In 2018 EU governments declined to sign a joint declaration in Beijing, arguing the BRI lacked standards on financing and transparency. Last month the White House warned Italy not to lend legitimacy to China’s “infrastructure vanity project” and that doing so could damage its global reputation. It failed to convince.
Prime Minister Giuseppe Conte said that Italy’s signing of a memorandum of understanding (MoU), for the BRI, which is due to happen this week, would not jeopardise Italy’s commitment within the strategic Transatlantic alliance or with European partners. He hopes that Italy would benefit from the project that envisions overland and maritime routes connecting China with Europe. While the details have been worked out over months of consultations, Conte emphasised that the MoU is not legally binding, but it would give Italy access to an enormous market.
The authors are right about Conte’s naiveness, when he thought closer bilateral ties with China could rebalance trade and boost Italy’s exports. The inbalance is staggering – “Italian exports to China currently total roughly €13 billion ($14.7 billion) per year, while imports are approximately €29 billion. Despite “far more balanced trade” with China, neither France nor Germany “officially endorsed the BRI.” Poland and other Eastern EU states that did, have “since complained that the promised economic opportunities never materialized.”
The global infrastructure project aimed at connecting Asia, the Middle East, Africa and Europe via a network of ports, railways, tunnels etc. and redefining trade routes. Conte looks forward to having new airports, new trade corridors, which would boost Italy’s economic growth. “We don’t want to lose any opportunity,” he said.
Yet in parliament, the opposition attacked the planned MoU and the lack of detail provided to lawmakers, warning that the deal could be a Trojan horse for China to undermine Italian industries. Concerns also focus on whether the accords include 5G access.
The EU, meanwhile, fears the new agreement with China will invoke divisions with member states wary of Beijing’s expansionist goals. The initiative has been widely criticised for mostly benefiting Chinese companies and potentially creating “debt traps” in poorer countries.
Even lawmakers from the right-wing League, part of Conte’s coalition, said they support the MoU only if it does not harm Italy’s relations with its partners, and pose a security threat – exerting control over Italians’ data, and energy. They do not mind that China invests in railways and ports, as long as the control remains in Italian hands. The biggest problem critics see, is that Italy pursued deals with China without properly keeping its EU allies informed. Only time can tell whether joining the BRI would revive Italy’s sluggish economy and help open up greater access to China’s lucrative market.”
The authors propose: “Rather than unilaterally endorse China’s global trade and investment strategy, the Italian government should be developing a more balanced China strategy in partnership with the other EU members. An EU that spoke with one voice would have far more negotiating power than Italy can ever hope to wield on its own, and thus would be in a better position to advance Italy’s interests vis-à-vis China.” Many in Europe put the blame on Trump’s trade war with America’s old allies, driving them into China’s arms.
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Kenneth Fedio Mar 21, 2019

This is capitulation to the trashing of the Italian socio-economic order by people who are economic imperialists of a type that hasn't been seen since Rule Britannica. Breathtaking. And speaking of taking...........or being on that program, what a fertile ground for it.
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