Prime Minister Matthew Renzi will lead a mission government/business leaving for the China on June 9th, in which he will also participate Alessandro Castellano, CEO of SACE.
It will be an opportunity to recall the commitment of the insurance-financial group in the country and announce important new initiatives to support the competitiveness of Italian companies in China, alongside important protagonists of this market.
In terms of trade, Italy is China's 15th trading partner worldwide and 4th in Europe. The leading sector in 2013 remains that of instrumental mechanics, followed by fashion, the automotive sector and manufacturing (in this regard, see the attached SACE Country File). Overall, trade decreased by about 3% in 2013 after a drop of about 14% in 2012. In particular, Italian imports continue to decrease (-7,5%), while exports are recovering (+9,5% in 2013, to reach the quota of EUR 10 billion). There are around 2.000 Italian companies established in China, through the various methods of presence, to which over 60.000 jobs and a turnover of around EUR 5 billion are attributable. From a sectoral point of view, Italian investments are quite diversified, with significant shares for mechanics and textiles. Although downsized compared to the pre-crisis period, the potential offered by the Chinese market continues to be vast.
This is confirmed by the forecasts of SACE, according to which Italian exports to China will achieve an average annual growth of more than 11% over the next four years.
Drivers of these opportunities are the expansion of the middle class, the growth and diversification of domestic consumption, the progressive urbanization and industrial development which, despite the complexity of its growth path, confirm China as a primary player at a regional and global level , capable of offering a wide range of opportunities to our companies in various sectors.
A further signal was given by the Chinese authorities through the slow and gradual process of internationalization of the local currency (renmimbi or yuan), which since last year has become the second largest international trade finance currency, according to SWIFT data.
Italian exports of goods to China (forecasts; var.%)
Table at FIRSTonline.info
Source: SACE – Export Rethink Report
Prime Minister Renzi's mission will also touch the Kazakhstan and Vietnam , countries to which we will return in the next few days.
Attachments: SACE China country file 0514.pdf
