A present of huge occasions is disclosing for the economic partnership between Italy and China. Those factors, that up to a recent past represented a barrier to collaboration, namely the similarity of the countries’ productive specializations and the small dimension of the Italian firms, have now turned into occasions for current and future development. This happens at a time in which the BRI, as part of a wider renewed economic strategy of the Chinese government, is reshaping the world commercial environment, opening room for unprecedented business occasions between our two countries. 

China is pursuing a future of growth, by boosting consumption, technological progress and industrial upgrade as well as carrying out a new approach to international cooperation, particularly through the BRI. In all these respects, Italy could be a valuable partner to work with, both within the national borders and abroad, in all the countries involved in the BRI. 

The Initiative indeed entails a wide range of opportunities of business and cooperation for Italy, which can be broadly summarized in three main areas: opportunities deriving directly from infrastructures, satellite opportunities and those linked to consumer goods.

As for the former two areas, Italian firms could find business occasions both directly linked to the actual building of infrastructural projects and, indirectly, from all the collateral projects that around any new would-be infrastructure emerge.

Many of the top GDP countries embraced by the BRI are particularly open to foreign businesses (eg Russia, India, South Korea, Turkey, Saudi Arabia, Thailand and Poland) and require high environmental standards and cutting-edge technologies. As for the satellite opportunities, that can be urbanization, decontamination and water treatment projects, as well as services of sanitation, transmission and energy supplies, these too demand high quality standards.

Italian firms have, to this respect, good chances to award subcontracts and supplies for Chinese contractors. For over 30 years Italy has been, indeed, the second greatest European country in manufacturing (behind Germany) and the seventh worldwide, with many companies that picture as market leaders in branches that make Made in Italy famous around the globe.

Research and innovation are traditionally integrated with industrial processes, with excellence in natural sciences (neuroscience), physics and engineering (for example robotics) and other specific sectors (archaeology and hi-tech between the others). 

The most internationalized firms are also the ones that display a relevant expertise in the practice of working together with other businesses thanks to the experience of the industrial districts, which represent a strategic asset of our productive system and an Italian prerogative worldwide. In those local realities, the firms had the chance to experience beforehand the so-called Global Value Chain, phenomenon that now permeates global economics and trade. 

Lastly, the growth and development stimulated by the BRI can push and shape the demand for consumer goods (for example fashion, furniture, appliances) thus triggering new opportunities for our export consumer goods are traditionally a strategic sector of.

Beside a productive structure that makes us competitive in the global supply chain, Italy has a strong national system of support and incentives for internationalization that allow it to fully realize its vocation for export. 

In the match we are about to face, where huge opportunities of growth for our export and the country as a whole are at stake, SACE, as export credit agency, is ready to play its part beside the Italian and Chinese firms. The agency can facilitate the match between demand and supply by making the purchasing of Made in Italy more competitive for Chinese contractors, both in terms of singular firms and of the organization of production chains. SACE’s office in Shanghai, inaugurated this year, will further tighten the collaboration between the many actors of this process. 

The author is the Chairman of SACE, the Italian export credit agency. The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.

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