Italian business figure highlights cooperation with China on industrial machinery, EV

Italy sees major business opportunities from China in areas such as industrial machinery and green energy, and the country needs Chinese electric vehicle (EV) investments to boost its auto industry, according to an Italian business figure.

China is Italy's largest trading partner in Asia and the biggest non-EU trading partner after the United States, while Italy is China's fourth-largest trading partner in the European Union (EU). Italian Prime Minister Giorgia Meloni began her five-day visit to China on Saturday, aiming to strengthen trade relations between the two countries.

In an interview with China Global Television Network (CGTN) on Wednesday, Vincenzo Raffa, vice president of the Italy-China Association of Business, shared his thoughts on potential areas for bilateral trade cooperation between the two countries. For example, he noted cooperation on industry machinery, which has been a leading export from China to Italy in recent years.

"First of all, the agricultural sector, also the pharmaceutical (sector). Because China keeps on asking for higher healthcare needs in China, and Italy can address this kind of needs. Also (industries related to) aging population both in Italy and China are really key industries. Of course, we are also talking about luxury goods, industry machinery and advanced manufacturing. Industry machinery is the number one export from China to Italy in the past years and still is. And, of course, green technology, where China is a leader for the past years and renewable energy where Europe and Italy are focusing on," said Raffa.

Despite the EU's unjustified high tariffs on Chinese EVs, Raffa said that Italy, as an EU member, actually welcomes Chinese manufacturers setting up EV production in the country to support its auto market, according to the Italian business insider.

"From one side, Europe is sending a blockage message. From the other side, Italy is saying it's okay. We are in the middle of the Mediterranean; Chinese investors can have access to the Italian market which is at the center of logistics for the entirety of Europe and Africa, so we can be partners. From the other side, the Italians are looking for a place to invest, so there are mixed messages at the moment. What we can see from an economic point of view is that actually, although there are some tariffs on auto exports from China, the concrete messages are actually opposite. The Italian government is looking for a second investor after Le Motor in Italy to produce cars in Italy, so this is actually what Europe wants. Europe wants Chinese companies to set their production in Europe and start producing in Europe to help the European market grow. So one is a political message, one is an economic message," said Raffa.

In recent months, China's visa-free policy for nationals of more countries has signaled greater openness, which is expected to attract more overseas investors, according to Raffa.

"For sure, the visa-free policy is more than welcome. For new investors or for people who want to access this incredibly flexible market, it is a good thing. I would not say that this is really shifting the foreign direct investment arena in the future or in the present. But, for sure, this portrays China as taking a more open step towards better treating foreign direct investment," he said.

Italian business figure highlights cooperation with China on industrial machinery, EV

Experts said that the farming-friendly measures outlined in the annual government work report will not only motivate farmers to increase grain production but also encourage local governments to place greater emphasis on agriculture and invest more in the sector.

China has raised its grain output target for 2025 to an all time high of over 700 million metric tons, according to the annual government work report.

"Improving the system designed to benefit and enrich grain farmers is a way to support them. For local governments in major grain-producing regions, it's important to establish a coordinated mechanism for inter-provincial compensation led by the central government. This is expected to be implemented this year, ensuring that both grain farmers and local governments in these areas benefit from their efforts to focus on grain production. This is a priority," said Hu Xiangdong, director of the Institute of Agricultural Economics and Development under the Chinese Academy of Agricultural Sciences.

To reach the target, experts highlighted, priority should be given to promoting integrated technologies in the agricultural sector, alongside upgrading related infrastructure and facilities. These measures are expected to boost per unit yield of grain.

"By developing high-standard farmland, advancing facility agriculture, and improving related equipment, we can strengthen our disaster prevention and mitigation capabilities. The key to increasing yield per unit is effectively combining the application of integrated technology with improvements in agricultural conditions, such as production in high-standard farmland," said Li Guoxiang, a research fellow at the Institute of Rural Development of the Chinese Academy of Social Sciences.

Moreover, the government work report this year also outlined plans to stabilize grain prices, a key concern for farmers, and ensure that the prices of major agricultural products remain within a reasonable range.

"Recently, grain prices have stabilized and started to rise, while livestock and poultry product prices have remained steady. This is encouraging news for farmers. By maintaining reasonable prices, farmers can better benefit from growing grain and engaging in agricultural production," Li said.

Experts applaud farming-friendly measures outlined in government work report