MILAN, Sept. 21 (Class Editori) - Emilia-Romagna region imported goods worth over €3,5 billion from China in the last year and exported 2 billion, with a significant deficit of the balance of trade, partly offset by foreign direct investments from China, which amount at over 70.
These are the key figures of the "China Report 2020" presented this morning in Bologna with the Italian-China Foundation, by the regional councilor for economic development, Vincenzo Colla, who reiterated the priority: "We must aim at closing the gap in the balance of trade with China".
While the trend seems encouraging because exports have grown by 49% over the last 10 years compared to 10% of imports, the Chinese situation is abnormal. With the rest of the world, Emilia-Romagna shows a very positive balance.
The two main items of interchange are mechanical productions and fashion, and this is true for both geographical areas: both Emilia-Romagna and China import and export the same kind of product, a situation that economists call intra-industrial trade, which is developed among mature countries, of equal economic level and with a strong integration.
The solution explained by Councilor Colla, addressed at canceling the trade deficit in 5 years, is to strongly invest in export digitization and, above all, in the companies' participation to business-to-business and business-to-consumer market places linked to China. "Several projects are already active with the Emilia-Romagna Chambers of Commerce and the Industrial Associations, but a unified, shared and detailed strategy must be defined at a territorial and national level", Colla has explained.
The mechanical production sector accounts for 62% of the total export, followed by the fashion chain with 16%. Among the sub-sectors, there is the one of general-purpose machines, which recorded 612 million exports in 2019. Other relevant sectors, with an export value higher than 100 million, are automotive (188 million), medicines and pharmaceutical preparations (119 million).
In addition, regional imports from China are mainly focused on mechanical products (51%) and fashion industry, which plays a relevant role (24%). The clothing sector is in the spotlight, which, alone, recorded 380 million imports in 2019.
In Emilia-Romagna, the foreign direct investments (FDI) from China are over 70, for a total amount of about 2,600 employees and an aggregate turnover of €1.4 billion, (Aida- Bureau Van Dijk, data related to 2019). Among the main regional enterprises controlled by Chinese investors there are: Ferretti (Yacht) and MCM (Machining Centers Manufacturing), as well as the commercial Volvo Car Italia.
Among the in-progress operations of last year, there is the one of Chinese FAW in the electric automotive sector. At the beginning of 2020, FAW - a Chinese company leader in the automotive sector - announced to have chosen Emilia-Romagna in order to build high range electric and hybrid vehicles. This is the first large investment abroad made by the Chinese brand, accounting for over €1 billion. The Asian company works together with the Silk EV, an engineering and design start-up with the official headquarter in the USA but active in the region.
Last year turned out to be particularly productive in order to strengthen the relationships and cooperation. In 2015, after the Municipality of Shanghai and the province of Zhejiang, Emilia-Romagna region signed a memorandum of understanding with the province administration of Guangdong, one of the richest areas of China, which includes, among the others, the Great Bay Area with Shenzhen, in order to implement exchange and cooperation initiatives in trade and investments, technology environmental protection, culture and tourisms fields.
Last October, it was Shandong Province's turn with the signature of a cooperation agreement aimed at reaching an economic and commercial development; participation to exhibitions and direct investments; technologic transfer; collaboration with universities and research centres; collaboration in culture, art and tourism sectors.
(Source:Class Editori)
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