According to reports, Italian Prime Minister Giorgia Meloni has privately communicated to Chinese Premier Li Qiang Italy's intent to withdraw from China's Belt and Road Initiative (BRI). This decision coincides with Italy's participation as one of the signatory countries in the memorandum of understanding for the India-Middle East-Europe Economic Corridor (IMEEC), an agreement inked during the initial day of the G20 Summit on September 9.

The IMEEC initiative encompasses two essential corridors: an Eastern Corridor designed to facilitate connectivity between India and the Gulf region, and a Northern Corridor aimed at linking the Gulf region with Europe. This ambitious project encompasses a comprehensive transportation network, incorporating railways, ship-rail transit systems, and road transport routes.

While the BRI infrastructure deal was initially conceived to bolster the infrastructure of middle and lower-income nations, it has raised concerns as several nations have found themselves ensnared in a debt trap due to their involvement.

Earlier this year, Bloomberg reported Rome's intentions to exit the BRI. However, Prime Minister Meloni grappled with the challenge of conveying this decision to Beijing without risking potential trade retaliation from Chinese President Xi Jinping.

In a post-G20 press conference, Meloni confirmed her discussions with the Chinese premier regarding the BRI but stressed that a definitive decision had not yet been reached. She emphasized that Italy's bilateral relationship with China extends beyond the Belt and Road Initiative, highlighting that other European nations have managed to foster better relations with Beijing without formal BRI membership.

Italy's contemplated exit from the BRI pact, initially signed in 2019, has been a sensitive issue, partly due to a warning issued by the Chinese ambassador to Italy earlier this year. The ambassador cautioned that there could be "negative consequences" should Italy choose to withdraw from the agreement.

Prime Minister Meloni is reportedly planning an upcoming visit to China, underscoring the significance of carefully managing Italy's withdrawal from the infrastructure pact. Meloni's government has meticulously assessed how to approach China and convey Rome's decision to withdraw from the initiative; all while considering potential trade ramifications stemming from their departure.

In this intricate diplomatic dance, Italy navigates the complex terrain of international relations and economic cooperation with China, weighed against the advantages and disadvantages of participation in the Belt and Road Initiative.

Image source: ET