Both China and Italy have undergone changes in recent years. Since the new government took office in June 2018, Italy has adjusted its domestic and foreign policies, becoming more pragmatic and friendlier toward China. While on the basis of steady economic growth, China has further deepened its reform and opening-up, presenting new opportunities for cooperation between the two countries.

First, the new Italian government has attached greater importance to developing relations with China and adopted a more pragmatic and friendly policy than its predecessor. Shortly after taking office last year, the Italian government decided to set up a "China Task Force" to coordinate Italy's China policies in trade, finance, investment, research and other fields. Although some European countries and the United States have tightened their foreign investment review mechanisms, Italy's new government is more pragmatic. In February this year, Italy's Ministry of Economic Development issued a statement denying that the Italian government was planning to ban Chinese vendors Huawei and ZTE from participating in the deployment of 5G networks in the country.

Second, Italy is expected to become an active participant in the Belt and Road Initiative. In recent years, the initiative has received positive responses from many countries and there are many favorable conditions for Italy to participate in it. For example, as a Mediterranean country, Italy has many ports and can leverage its position to be the "southern bridge" connecting Europe and Asia. As a developed country, many of Italy's railways, highways and other infrastructure have not been updated for years. The successful investment of Chinese companies in the Greek port of Piraeus has attracted the attention of the Italian government, which hopes that similar infrastructure construction and cooperation can take place in Italy. So the Belt and Road Initiative has become an important link connecting China-Italy relations, and Italy's government has expressed the hope it can be the first G7 member to sign an agreement with China on the Belt and Road Initiative.

Third, Italy looks forward to sharing the opportunities of China's economic growth. Since the financial crisis in 2008, Italy's economy has been under pressure. Its GDP growth in 2018 was only 1.0 percent. Its public debt reached 2.3 trillion euros ($2.6 trillion), accounting for over 130 percent of its GDP, and its unemployment rate was at a high level of 10.5 percent. For the Italian government, monetary policy is in the hands of the European Central Bank, while fiscal policy is subject to the EU's fiscal discipline. Structural reform is difficult to implement effectively because of the complex decision-making system. When internal policy adjustment is constrained, it is particularly important to seize external opportunities. If Italy can effectively connect with the Belt and Road Initiative, relevant investment will directly improve its infrastructure and boost its economy. As China continues to open up its internal market, Italy can also use the Belt and Road to export more to China and other countries.

The visit of President Xi Jinping can enhance Italy's cooperation with China and will likely result in increasing investment by Chinese enterprises that will directly serve Italy's economic growth and create jobs. Likewise the number of Chinese tourists visiting the country is likely to grow, which will provide a big boost to the Italian tourism industry.

In recent years, misunderstandings and concerns have emerged in some countries about China's Belt and Road Initiative, which has triggered conservative policies. This could be an opportunity for Italy, which has adopted a more pragmatic policy, to set a cooperation model for other European partners. Take 5G communication equipment as an example. If China's advantageous technologies can be widely used in Italy and there are no problems, then more countries will likely emulate it.

Fourth, there is potential for third-party cooperation between the two countries. Italy welcomes China's presence in Africa, recognizes the way in which China cooperates with Africa, and hopes to strengthen third-party cooperation with China in this region.

To sum up, with President Xi's visit, China and Italy can seize new opportunities for a new era of cooperation.

Liu Mingli is deputy director of Institute of European Studies, China Institutes of Contemporary International Relations. 

The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.

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