A major change in global dynamics was brought about by Italy’s December 6 departure from China’s Belt and Road Initiative (BRI).
Italy, the first nation from the G7 to join the BRI in 2019, had high hopes for economic expansion, more trade, and development. But four years later, it was clear that the 20 billion euros that had been promised had not materialised, a situation that was similar to problems encountered by other BRI projects. Furthermore, trade data showed that China’s economic interactions with Germany and France—two non-BRI signatories—surpassed those with Italy.
In July, the Italian Defense Minister criticised the BRI decision, calling it “improvised and atrocious,” which hinted at the country’s eventual pullout. The BRI’s standing internationally took a serious hit as a result of this action.
Italy’s withdrawal shortly after the China-EU summit in Beijing added to China’s problems in Europe. Addressing trade imbalances and lowering the EU’s reliance on Beijing for essential commodities were the summit’s main goals, as highlighted by President Xi Jinping’s emphasis on avoiding confrontation due to various political systems.
Source: Drishti IAS
During the conference, China threatened to retaliate if the EU placed sanctions on Chinese enterprises, issuing a soft ultimatum. Still, doubts persisted about Beijing’s sincerity in addressing current issues. Due to the trade imbalances, China became one of the EU’s main trading partners.
Surprisingly, the choice by Italy to leave the BRI is perceived as pro-Indian, in line with New Delhi’s continuous criticism of the project, especially with regard to debt traps and territorial sovereignty.
The Italian ambassador to India and Nepal, Vincenzo De Luca, emphasised the increasing commerce, defence, energy, and space cooperation between Italy and India. De Luca underlined Italy’s desire to be a major player in the India-Middle East-Europe-Economic Corridor (IMEC) and the Indo-Pacific. In light of its withdrawal from the Belt and Road Initiative, Italy’s geopolitical realignment in the region is called into question by this expanding cooperation.
Source: DW News
The narrative advanced by President Xi that the BRI is a win-win initiative is put to the test by Italy’s exit. Accusations that the Belt and Road Initiative (BRI) promotes strategic interests rather than mutual collaboration have arisen from worries about China’s geopolitical ambitions, which are demonstrated by initiatives like the Hambantota port in Sri Lanka. The Chinese Foreign Ministry denounced a slander campaign that undermines cooperative construction efforts and promotes conflict and division, without specifically mentioning Italy.
Italy’s withdrawal might indicate a possible decline for the BRI by prompting other member countries to review or reorganise ongoing initiatives. The Belt and Road Initiative (BRI) seems to have peaked in less than ten years and is currently in decline, which is affecting China’s standing in the world. Italy’s support of New Delhi highlights the changing geopolitical realities and represents a diplomatic win for India.
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