Italy has formally withdrawn from China’s Belt and Road infrastructure initiative (BRI). Italy was the only G7 nation to sign the BRI. Italy, a member of the European Union, G7 and NATO, signed up in 2019 under the government of then Prime Minister Giuseppe Conte.
Key points
- The deal was due to automatically renew in March 2024 unless Italy opted out by the end of this year.
- According to China, it has inked over two trillion dollars in contracts around the world, from high-speed rail tracks crisscrossing South East Asia and massive transport, energy and infrastructure works through Central Asia.
- Proponents of hail BRI for bringing resources and economic growth to the Global South — but it has also been slammed for saddling poor countries with enormous debt.
- Italy’s decision to exit the Belt and Road Initiative seems to be influenced by the changing geo-political considerations and the limited impact of the project on Italy’s economy.
- According to media reports, Italy’s economy as the growth in exports remained limited. As per the reports, Italy’s exports to China increased from 14.5 billion euros to 18.5 billion euros after joining BRI, but the numbers are much better for China as its exports to Italy grew from 33.5 billion euros to 50.9 billion euros.
- The non-binding memorandum of understanding struck with China contained broad undertakings for cooperation in logistics, infrastructure, financial and environmental sectors.
- India has consistently opposed the project as a key part of it passes through Pakistan-occupied Kashmir (PoK).
- China proposed the Belt and Road Initiative (BRI) in 2013 to improve connectivity and cooperation on a transcontinental scale.
