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China's Xi insists new Silk Road runs both ways as Italy signs up

Tuesday, March 26, 2019

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Rome , Italy (AFP) — Chinese President Xi Jinping sought Friday to allay Western unease over his new Silk Road initiative by emphasising the vast infrastructure project's two-way nature as he kicked off a whistle-stop European tour in Rome.

Italy rolled out the red carpet for Xi, who on Saturday signed a memorandum of understanding for Rome to join the $1-trillion Belt and Road Initiative despite misgivings in Washington and Brussels.

Italy is the first of the Group of Seven most-developed nations to sign up for the new Silk Road, which critics say is “predatory” and overwhelmingly favours China and Chinese companies.

“Between us, there is no fundamental conflict of interest,” Xi told journalists after talks with his Italian counterpart Sergio Mattarella.

“China wants commercial exchanges to go both ways and for investment to flow in both directions,” Xi said.

Mattarella said that business must go “in both directions... with fair competition, respecting intellectual property rights and while fighting counterfeit goods”.

Salvini snub

Around 1,000 extra police were deployed around Rome for the state visit before Xi headed to the Sicilian city of Palermo, where his singer wife Peng Liyuan reportedly wanted to see the Teatro Massimo opera house.

In what some perceived as a snub, Italy's far-right Deputy Prime Minister Matteo Salvini said he was not attending Friday's state dinner for Xi at Mattarella's Quirinal Palace.

Salvini has said Italy would be “no-one's colony” and urged caution about using telecom Chinese giant Huawei's next generation 5G mobile technology, while his coalition partner Luigi Di Maio is keener for Chinese partnerships.

The United States has warned European allies that Huawei could use its 5G technology as a “back-door” for spying, a claim that China has strongly rejected, calling them “abnormal, immoral” attacks.

NATO member Italy's plan to join China's ambitious maritime, rail and road venture has raised eyebrows among Western allies and within Italy.

“Today we say 'Italy first' in trade relations, while remaining US allies, in NATO and in the EU,” Deputy Prime Minister Di Maio of the anti-establishment Five Star Movement said on the sidelines of a China-Italy business forum on Friday.

Vanity project

Debt-ridden Italy is technically in recession and keen to have more business with China.

White House official Garrett Marquis over a week ago tweeted that there was “no need” for Italy to endorse “China's infrastructure vanity project”.

Xi's visit came a week after the European Union released a 10-point plan outlining a shift to more assertive relations with Beijing, warning that China was a “rival” to the bloc as well as its biggest trading partner.

France on Thursday announced that President Emmanuel Macron will hold trade and climate talks today with Xi, German Chancellor Angela Merkel and European Commission president Jean-Claude Juncker.

In Brussels, Italian Prime Minister Giuseppe Conte on Friday briefed EU leaders about Italy's Silk Road MOU, where Merkel said: “As he (Conte) described it, I don't think I have anything to criticise, for now.

“But we have of course already said that it's better to act uniformly,” she said.

Macron, who is at loggerheads with Italy's populist government, said: “It's not a good method to discuss new Silk Road agreements bilaterally.”

Friday's Brussels summit also laid the foundations for Europe-wide policies ahead of a much-anticipated China-EU summit on April 9 in the Belgian capital.

“For the first time there is a will to coordinate,” Macron said.

The European Commission will before the end of the year come up with a broad proposal for the EU's “industrial future”, including measures on commerce, competition and hi-tech.

Beijing is particularly interested in investing in Italian ports to help funnel its products into Europe, amid warnings that Rome must avoid the model of the Greek port of Piraeus, which was taken over by Chinese shipping giant Cosco in 2016.

Supporters of the non-binding memorandum of understanding said that it will lead to China complying with European Union standards, including on the environment and intellectual property, and cannot be compared to debt-inducing deals Beijing has signed with developing countries.

Despite apparent warming ties, Xi was not expected to meet Pope Francis.

The Vatican has diplomatic relations with Taiwan and not Beijing, so the encounter was unlikely despite an agreement on appointing bishops in China signed last year.

Xi headed to Monaco on Sunday and then on to France to cap his European tour.


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