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*By Faabs Media | February 14, 2024*

Italy-China Relations

**Introduction:**

- Italian policymakers emphasize the need for "de-risking" to reduce economic dependence on China.

- De-risking differs from decoupling but aims to mitigate risks associated with Chinese influence.

**Background:**

- Discussion on de-risking emerged after Italy signed a Belt and Road Initiative (BRI) MOU during President Xi Jinping's visit in 2019.

- Initially advocated by right-wing groups like Brothers of Italy, de-risking gained momentum under Prime Minister Mario Draghi's government in 2021.

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**Areas of Focus:**

1. **Critical Infrastructure:**

- Italy blocked Chinese attempts to acquire stakes in port authorities, safeguarding national interests.

- Legislation kept critical infrastructure under national control, halting China's plans to use Italian ports as a gateway to Europe.

2. **Industrial Investments:**

- Measures were taken to prevent Chinese takeovers of key industrial assets, such as semiconductor firm LPE and Italian firm Iveco.

- Special powers were used to protect strategic national assets from Chinese influence.

3. **Telecommunications:**

- Restrictions were imposed on Huawei's presence in Italy's telecom networks, particularly in 5G rollout.

- Loopholes favoring Chinese ICT companies were closed, leading to a shift in Huawei's operations in Italy.

4. **Pandemic Response:**

- Italy distanced itself from adopting CCP-style social control during the COVID-19 pandemic.

- Policies endorsing China's Health Silk Road were unwound, with a focus on restoring civil liberties and avoiding Chinese influence.

**Political Dynamics:**

- The Meloni government continued the de-risking process initiated by Draghi, officially exiting the BRI and severing ties with Beijing in sensitive areas.

- There's a concern that future political shifts could reverse the progress made in reducing dependencies on China.

**Conclusion:**

- Italy's journey towards de-risking from China has been gradual, addressing vulnerabilities while maintaining open channels for cooperation in selected areas.

- The effectiveness of de-risking efforts will depend on sustained political commitment to safeguarding national interests and aligning with Euro-Atlantic allies' strategies.