Will China’s “Belt and Road” Initiative Boost Luxury in Italy?

Last March, Italy (a NATO and EU member and a G7 country) endorsed China’s “Belt and Road” plan, which represents a new level of success for China. As China’s new engagement with the international community is seen as a serious threat to the current world order, some analysts argue that this partnership will help foster a Sino-EU cooperation. However, Italy’s new friendship with China “has angered Washington and alarmed some European Union allies, who fear it could see Beijing gain access to sensitive technologies and critical transport hubs.”

Meanwhile, the Italian business community has commended the initiative. Forbes reports that Italian companies have “inked deals with Chinese counterparts worth an initial 2.5 billion euros ($2.8 billion).” According to Deputy Prime Minister Luigi Di Maio, these contracts had a feasible prospective value of $22 billion (20 billion euros).

Does this mean that China’s “Belt and Road” plan could be an opportunity for the Italian luxury sector? In short: yes! That’s because, henceforth, Italian brands can access a network of established and respected Chinese businesses that have been pre-vetted by the Chinese government. China will only present eligible companies who have already been deemed to be fair and trustworthy to foreign partners. This process will help avoid deceptive and unfair business practices while also encouraging legitimate business activities. Though the promotion of good business practices should be the ultimate target, there will be additional benefits that come from the Sino-Italian partnership. For example, China’s “Belt and Road” plan will help both sides secure future collaborations in trade and transport.

After falling back into a recession by the end of 2018, Italy stands as the modern EU poster child for economic and political uncertainty, and it desperately needs China’s investments, particularly for rebuilding its infrastructure. Unfortunately, the recent and deadly collapse of a 50-year-old bridge in Genoa is not an isolated incident. Nationwide, dilapidated roads, bridges, and buildings are putting the lives of millions at risk, and according to Nicola Beretta Covacivich, global head of infrastructure investments at Santander Asset Management in London, the government’s budget policies “won’t renew growth and instead will cause the budget’s additional spending on infrastructure to fall far short of what’s needed.” But why would China invest in Italy’s infrastructure?

Because China needs Italy, too. By financing Italy’s infrastructure, Beijing can secure faster access to Italy and the European market. By opening up the Italian market, China’s retail, tourism, education, and innovation divisions will get a much-needed boost.

Last March, Italy (a NATO and EU member and a G7 country) endorsed China’s “Belt and Road” plan, which represents a new level of success for China. As China’s new engagement with the international community is seen as a serious threat to the current world order, some analysts argue that this partnership will help foster a Sino-EU cooperation. However, Italy’s new friendship with China “has angered Washington and alarmed some European Union allies, who fear it could see Beijing gain access to sensitive technologies and critical transport hubs.”

Meanwhile, the Italian business community has commended the initiative. Forbes reports that Italian companies have “inked deals with Chinese counterparts worth an initial 2.5 billion euros ($2.8 billion).” According to Deputy Prime Minister Luigi Di Maio, these contracts had a feasible prospective value of $22 billion (20 billion euros).

Does this mean that China’s “Belt and Road” plan could be an opportunity for the Italian luxury sector? In short: yes! That’s because, henceforth, Italian brands can access a network of established and respected Chinese businesses that have been pre-vetted by the Chinese government. China will only present eligible companies who have already been deemed to be fair and trustworthy to foreign partners. This process will help avoid deceptive and unfair business practices while also encouraging legitimate business activities. Though the promotion of good business practices should be the ultimate target, there will be additional benefits that come from the Sino-Italian partnership. For example, China’s “Belt and Road” plan will help both sides secure future collaborations in trade and transport.

After falling back into a recession by the end of 2018, Italy stands as the modern EU poster child for economic and political uncertainty, and it desperately needs China’s investments, particularly for rebuilding its infrastructure. Unfortunately, the recent and deadly collapse of a 50-year-old bridge in Genoa is not an isolated incident. Nationwide, dilapidated roads, bridges, and buildings are putting the lives of millions at risk, and according to Nicola Beretta Covacivich, global head of infrastructure investments at Santander Asset Management in London, the government’s budget policies “won’t renew growth and instead will cause the budget’s additional spending on infrastructure to fall far short of what’s needed.” But why would China invest in Italy’s infrastructure?

Because China needs Italy, too. By financing Italy’s infrastructure, Beijing can secure faster access to Italy and the European market. By opening up the Italian market, China’s retail, tourism, education, and innovation divisions will get a much-needed boost.

Source: https://jingdaily.com/will-chinas-belt-and-road-initiative-boost-luxury-in-italy/