China and Italy Eye Economic Synergy Amidst Expanding Trade Surplus

China and Italy discuss bolstering economic ties despite a growing trade surplus. Italy's withdrawal from China's Belt and Road Initiative and the strategic rebalancing deadlines approaching. Beijing's trade surplus with Rome grows while both nations explore sectors for enhanced cooperation like fashion and pharmaceuticals.

China is emphasizing deeper trade connections with Italy, despite recent data indicating an increasing trade surplus between the two economies. The discussions come as the 2027 deadline to rebalance trade relationships draws near.

Over the past five years, trade between China, the world's second-largest economy, and Italy, the third-largest market in Europe, has exceeded $70 billion annually. This trade rebalancing effort was initiated after Italian Prime Minister Giorgia Meloni's visit in 2024, post-Italy's exit from the Belt and Road Initiative due to inadequate Chinese investments to close the trade gap.

While Chinese customs data highlights a growing trade surplus with Italy—stemming from increased exports and decreased imports—both nations see potential for cooperation in sectors like fashion, machinery, and pharmaceuticals. As the 2027 deadline looms, Beijing is under pressure to meet targets amidst accusations of delaying economic reforms.

(With inputs from agencies.)