China-Italy Diplomatic Thaw
According to statistics from China’s Ministry of Commerce, in the first half of 2024, the total bilateral trade between China and Italy reached €41 billion, an increase of 14% compared to the same period in 2023. China’s exports to Italy amounted to €27.5 billion, mainly including electronic products (35%), machinery (25%), and automotive parts (18%). Italy’s exports to China reached €13.5 billion, primarily concentrated in luxury goods (up 20%), high-end manufacturing products (up 18%), and food and beverages (up 15%).
In the first half of 2024, direct investment from Italy into China reached €2.3 billion, a year-on-year increase of 12%. These investments mainly flowed into renewable energy, life sciences, and high-tech manufacturing. Italy’s energy giant, Enel Green Power, has added €800 million to its photovoltaic projects in western China, expecting to contribute over 3 gigawatts of power capacity to China’s new energy market within the next two years. In the first half of the year, China’s direct investment in Italy reached €2.8 billion, an 18% increase compared to the same period in 2023. Chinese electric vehicle manufacturer NIO has built a new production facility in Italy, with an investment of €1 billion, expected to create 2,000 new jobs and plans to increase its production capacity to 100,000 electric vehicles annually by 2025.
In terms of technological cooperation, the number of new high-tech collaboration projects between China and Italy increased by 35% in 2024. Italian companies involved in AI and biopharmaceutical sectors in partnership with China received over €1.2 billion in joint funding. Italian aerospace company Leonardo signed a €2 billion cooperation agreement with China’s Aviation Industry Corporation to develop a new generation of drone systems. In the cultural and tourism sectors, it is expected that over 5.5 million Chinese tourists will visit Italy in 2024, an increase of 15% from 2023, bringing approximately €6 billion in tourism revenue to Italy. Chinese tourists’ average spending reached €11,000 per person, with 45% of this amount spent on luxury shopping.
Resumption of Dialogue
In February 2024, Italian Foreign Minister Antonio Tajani visited Beijing at the invitation of Chinese State Councilor and Foreign Minister Qin Gang. This meeting marked the official resumption of high-level dialogue between China and Italy. According to the joint statement issued after the meeting, both sides agreed to advance 20 key infrastructure projects under the Belt and Road Initiative framework, with a total investment expected to exceed €12 billion. These projects include port expansions, high-speed rail construction, and energy infrastructure upgrades, with completion expected by the end of 2025.
Italian Minister of Economic Development Adolfo Urso led a technology delegation to China and signed a series of cooperation agreements with the Chinese Ministry of Science and Technology. Over the next five years, both sides will jointly invest a total of €5 billion in research and development in artificial intelligence, clean energy, and biotechnology. In June 2024, the Italian and Chinese Ministers of Culture signed the “2024-2027 China-Italy Cultural Exchange Cooperation Framework Agreement” in Rome. Over the next three years, they will jointly host more than 60 cultural exchange events covering music, art, film, and the preservation of intangible cultural heritage.
According to a joint report by the Italian Tourism Board and China’s Ministry of Culture and Tourism, 20 additional direct flight routes between China and Italy are planned for 2024, bringing the total number of direct flights to 60 per week. The two sides also simplified the visa application process, expecting to attract more than 7 million Chinese tourists to Italy by 2025, contributing over €7.5 billion to the Italian economy. In the field of economic cooperation, the Italian Ministry of Economic Development announced that over the next two years, the two sides will carry out more than 35 cooperative projects, with a total investment expected to exceed €16 billion, creating over 5,000 jobs and an estimated annual output value of €3 billion.
New Opportunities for China-Italy Cooperation
In the field of renewable energy, China and Italy signed a €3 billion green energy cooperation agreement in 2024 to develop a 1.5-gigawatt solar power plant project in southern Italy, expected to provide clean energy to over 1.5 million households by 2026. The two sides also plan to jointly develop up to 10 wind and solar energy projects over the next five years, with a total installed capacity expected to reach 3.5 gigawatts. According to preliminary estimates, these projects will reduce carbon dioxide emissions by over 1.2 million tons annually. In the high-tech field, Italian technology companies and China’s Huawei signed a three-year cooperation agreement, with a joint investment of €1.2 billion to establish a high-tech research and development center focused on 5G technology, industrial internet, and smart city solutions.
In the education sector, the two sides will jointly invest €2.5 billion over the next five years to establish 10 bilateral cooperative universities. These universities will focus on key fields such as engineering, environmental science, and international relations. By 2028, these cooperative universities are expected to produce 10,000 graduates annually with international perspectives and professional skills, 70% of whom will participate in cross-border projects between China and Italy. China and Italy also signed a €350 million agricultural technology cooperation agreement focusing on efficient agricultural planting technology and the development and promotion of smart agricultural equipment. Through this cooperation, Italy’s high-end agricultural product exports are expected to grow by 18% by 2025.