According to the undersecretary of the Ministry of Economic Development, Italian enterprises have big chances to exploit in China. In the first 11 months of 2018, the Chinese-Italian trade grew 10%. Mechanical, food farming and pharmaceuticals were the most dynamic sectors for the bilateral trade.
In the coming years, for the Italian economy, the variable with major impact will be China and its economy, according to Michele Geraci, the undersecretary of the Ministry of Economic Development, in the following interview with ClassCnbc.
Question. China recently notified a slowdown of the economic data. Import fell of a 4.4% and export of a 7.6%. The month of December surprised analysts. After these data, will you continue to trust Chinese economy?
Answer. Absolutely. China is one of the most important variables. And the international trade has a value even more higher for the sustainability of our economy. Just consider that it counts for a third of the Italian GDP. China is also slowing down in relative terms, but a growth of 6.5% is high in absolute terms. Lately, as government, we mainly took care of the domestic economy, but we are convinced that Asia, and countries such as China, Vietnam and Korea offer big opportunities to exploit. This is a concept that I am trying to pass to our firms.
Q. China and the United States are holding meetings to come to an agreement on the conflict of duties. In your opinion, will they find a solution?
A. Yes, I think. The conflict of duties is a tactic used by several countries to find a better negotiation. We never believed that autarky could come back. It would be really unlikely.
Q. Latest data, referring to November, state a 10% increase of the exchange between Italy and China. Among the most dynamic sectors there are mechanical, food farming, furniture and pharmaceutical. What do you expect in 2019?
A. This year we have a plan to promote Made in Italy, but euro and dollar are not the only two variables to consider. We are deciding in which activities to invest, to be efficient, in which sectors and which kind of enterprises, with the medium-sized that need more help.
Q. You are leading an operational task force. On what are you working on? What is in progress?
A. We are working for the better information. Before implementing a strategy, companies have to have all the necessary information. In this respect, we are working in groups that allow to highlight not only the opportunities, but also the challenges that the Italian SMEs find when they want to do business in China.
Q. Looking at the export to China, compared to other countries, Italy is far back. For example, Germany exports five times more than us. What is your opinion?
A. It is undeniable that we are lagging behind in the commercial relations with China. But this implies that the potential to exploit is big. And I want Italy, an economy of 1.700 billion, to take back its rightful place, exporting more than it is doing now.
Q. Di Maio went to China. What is evolving in the Italian-Chinese relations?
A. The perception is changing. Italy wants to play the role that belongs to it in both European and international frameworks.
Q. Someone recently evoked a «legge Pernigotti». Are you thinking to make a law to avoid Italian brands to go overseas?
A. The matter is really difficult and it should be evaluated on a case by case basis. Delocalization is not positive but, for example, if a Chinese company buys a minority share of an Italian company and it let it grow also in China, it would not undermine it, but on the contrary it would strengthen it.
Q. Before you mention about the importance of information. Also Class editori, that owns this TV channel, launched a database together with the state agency Xinhua and a website to allow Italian SMEs to take advantages of the benefits of the Belt & Road Initiative. How do you see this opportunity?
A. The cooperation between China and third countries, especially with Africa, is a great opportunity that needs investments to become stable from economical and social points of view. And I believe that it's in the interest of us all.
(Source:Class Editori)
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