CHINA, CONFINDUSTRIA-CHAMBER OF COMMERCE: REBALANCING THE TRADE BALANCE AND FOSTERING INDUSTRIAL COLLABORATION

Cimmino: 'big gap to be bridged for exports, 2.4 bn for consumer goods and 2 bn for capital goods'

Riccardi: 'Italian foreign direct investment stock in China amounts to over 15 billion euro'

Beijing, 29 July 2024 - They are 115 Italian companies and business associations who participated today in the round table 'Italy investing in China: trends and perspective'. organised in Beijing by Confindustria and the Italian Chamber of Commerce in China (ICCC) as part of the 7th Italy-China Business Forum held during Premier Meloni's visit. The event delved into market dynamics for increase interchangein particular for boosting Italian exports so as to rebalancing the trade balance, and for foster industrial collaborations.

"Mutually beneficial relationships under the banner of reciprocity are needed to ensure equal market access conditions, including a more pronounced convergence of standards and technical regulations, the gap between which leads to significant additional costs for SMEs in particular. This is also why large companies present in China can play the role of business ambassadors and drivers within supply chains, sharing experiences and networks, accreditation with local authorities and other fundamental elements for reading the market,' he said Barbara Cimmino, Vice President for Export and Investment Attraction of Confindustria. "Suffice it to mention that according to the Centro Studi Confindustria the export potential that we can still fill in the Chinese market is EUR 2.4 billion for consumer goods alone and EUR 2 billion for capital goods.

"China continues to prove to be strategic for Italian exports: Beijing ranks among the top destinations for Italian exports globally, being the leading market in Asia and the second among non-European countries, after the United States,' he said. Lorenzo Riccardi, President of the Italian Chamber of Commerce in China. "The growing number and value of institutional missions in the country significantly promote economic relations between Italy and China, which count on a stock of Italian foreign direct investment in China of more than 15 billion euros according to ISTAT data, of which more than 1,300 are manufacturing investments that characterise the majority of the companies present with 130,000 employees and a turnover of 33 billion euros".

Present at the table, leading the companies from the various sectors, were ANFIA, ASSICA, Farmindustria, FEDERMACCHINE and Sistema Moda Italia, which presented visions and prospects in relations with their Chinese counterparts.

For ANFIA President Roberto Vavassori was present, who illustrated to his Chinese counterparts the supply chain skills present in our country and the reasons that suggest a rebalancing between direct investments, so far made by Italian companies in China, and those of Chinese companies in Italy with a gap, according to data provided by ICE-Agenzia, of about 5 billion euros to be bridged. A figure that - according to Vavassori - leaves room for the presence of at least one vehicle manufacturer in Italy.

ASSICA emphasised that, despite the fact that the Chinese market is closed to the import of pork products due to African swine fever, he strongly believes in the country to which he exported EUR 60m until two years ago. The hope is that the possibility of exporting can soon be resumed on the basis of shared sanitary protocols between Italy and China with the commitment of the institutions of the two countries.

Farmindustria He went on to point out that China is Italy's second largest non-European partner after the US in the pharmaceutical industry and is pushing hard for investment in the sector, also guaranteeing greater patent protection. Important Italian companies have been active in China for several years and can grow further. This is also why President Meloni's current mission is of strategic importance.

For FEDERMACCHINE China was the fourth largest market in 2023 with almost €2 billion in machinery purchases. Despite a slight drop in Italian exports to China and some policies that do not facilitate trade, the Association highlighted the great opportunities offered by this market and collaboration with Chinese companies.

Italian Fashion SystemFinally, she said she was in favour of 'free trade' in international trade as a pillar of competitiveness, but emphasised the importance for the textile-clothing sector of fair and advantageous trade relations for Italian producers, respecting the 'level playing field' and the rules of safety, traceability and quality of imported products, especially e-commerce products, as defined by European standards.