SACE e Bank of China, Milan branch, have concluded an important collaboration agreement intended to expand trade and investment opportunities between Italy and China, facilitating the implementation of operations of mutual interest.
The agreement provides for the strengthening of communication channels and the exchange of information between SACE and the Italian branch of Bank of China in order to identify strategic projects, facilitating access to sources of financing both for Chinese companies interested in purchasing goods and services from Italy, and for Italian companies interested in investment projects in China.
“This new agreement confirms SACE's commitment to supporting Italian businesses in a key market for Made in Italy like the Chinese one, where there is still a wide margin of penetration for our products – declared Michal Ron, Managing Director, Head of International business of SACE –. And it will allow us to benefit from Bank of China's extensive network, not only regionally but also internationally, to seize important new opportunities together."
With this agreement, Bank of China confirms its consolidated role of intermediation between the Chinese and Italian markets, renewing its commitment to supporting the integration and development of business between the two systems. This new collaboration will allow us to benefit from SACE's consolidated experience on the local and international market, thus expanding collaboration opportunities on a global scale.
Italian export to China: trend and potential
With export volumes of the order of 10 billion, Italy is today China's 15th trading partner on a global level and 4th on a European level. Over the last fifteen years, the performance of Italian sales in the country has always been sustained: it achieved an average annual growth rate of over 17% in the pre-crisis period (2000-2007), which dropped to 8,3%. 2008% in 2012-10, and returned to 2014% in 6,5, with equally positive prospects for the coming years: according to SACE forecasts, Italian exports are expected to grow by 2015% in 5,3 and 2016% on average between 2018-XNUMX.
Faced with such dynamism, SACE's portfolio of commitments in China, equal to approximately 88 million euros, reflects the country's abundant liquidity and positive credit rating, and presents ample room for expansion in light of the Chinese demand outlook.
The needs for modernization and raising of industrial quality standards will drive the demand for investment goods, mainly in the instrumental mechanics sectors, which today represent over 50% of Italian exports to the country.
Socio-demographic development and the evolution of living standards will push the demand for consumer goods, in particular for medium-high range products in the food, furniture and clothing sectors (especially after the government's recent declaration of a cut in duties to imports of luxury goods), eyewear and jewelery of which China is the third largest importer in the world for Italy, after Russia and the United Arab Emirates.
The fundamental driver of this growth in opportunities will be the approximately 2 thousand Italian companies established in China, which generate a turnover of approximately 5 billion euros, for which SACE has a lot to offer: obtaining financing in local currency, satisfying the growing demand of Chinese counterparts and improve payment conditions.
