Italy withdraws from leading Chinese 'Belt and Road' project

(Patria) - Italy will withdraw from the leading Chinese initiative 'Belt and Road' (BRI), the government in Rome confirmed. The administration of Prime Minister Giorgia Meloni informed Beijing that it will cease participating in the BRI before the deadline at the end of the year, the BBC reported.

Italy was the only major Western country to sign the BRI, one of China's most ambitious trade and infrastructure projects, in 2019. The move was fiercely criticized at the time by the United States and others.

The BRI, launched by Chinese President Xi Jinping in 2013, aims to invest about a billion dollars across Asia and Europe. Projects involving new and upgraded railways and ports are intended to connect China with Europe and other parts of Asia.

But the BRI has been criticized from the start by the US as an example of 'debt trap diplomacy.' Washington says China's plans include unsustainably large projects that countries cannot finance, giving Beijing leverage for its own goals.

Italy was the largest of 18 EU members, particularly in the east and south of the continent, to sign the BRI. The country's membership in the BRI was due to be automatically renewed in March next year, unless Italy notified China of its withdrawal by the end of this year.

Meloni previously called the former government's decision to join a 'serious mistake' and indicated she wanted to withdraw. But her government has stressed it seeks to maintain good relations with China despite the move.

Only a fraction of the up to 20 billion euros in investments in Italy promised by Xi in 2019 has materialized. Italian exports to China were worth 16.4 billion euros last year, compared to 13 billion euros in 2019. In contrast, Chinese exports to Italy rose to 57.5 billion euros from 31.7 billion euros over the same period.

China trades much more with other EU members, France and Germany, despite the two largest eurozone economies not being BRI members.