It is an agreement at the moment reduced, but the agreement is there. Italy, the first G7 country to do so, signs its agreement with China and enters the great project of the Asian giant, the so-called Silk Road, which in Beijing's plans will make China the great protagonist of the global economy in the coming decades. The agreement for now is on 29 points in all, most of them institutional, only ten companies, for a total of 7 billion euros: an investment all in all contained compared to Chinese ambitions and not revolutionary even on the Italian side, after the Mise a few weeks ago had hypothesized a minimum of 50 agreements.
In the front row is the Cassa Depositi e Prestiti, which will issue around 600 million euros of Panda bonds, in Chinese currency, to finance businesses. The agreement - which follows the memorandum of understanding signed by the parties on 28 August - was signed by the CEO of Cdp Fabrizio Palermo and by the Chairman of Bank of China Chen Siqing. The proceeds deriving from the Panda bonds will be used to finance - directly or indirectly - branches or subsidiaries of Italian companies based in China and thus support their growth. The liquidity collected will be channeled to companies both through the Italian banks present in China and through Chinese banks. With this emissions plan, CDP becomes the first Italian broadcaster, as well as the first national European promotional institute, to explore this type of market. Not only that: Cassa Depositi e Prestiti and Bank of China have also agreed to collaborate in the definition of a financial support program aimed at Italian companies in China, for 5 billion renminbi (about half a billion euros).
Then there are the ports: China will raise the flag in both Genoa and Trieste. There are only two real contracts, for Danieli and Ansaldo, steel and turbines. One of the most active companies is certainly Eni: the six-legged dog already operates in the Asian country and has been collaborating with the oil company CNPC since 2013 in Kashagan, and in Mozambique, where it invests in the gas sector. The prospect is to focus on the Chinese oil and gas industry. There are some tricolor food products, such as oranges but also frozen pork and bovine semen, which see the doors of the Chinese market open. Beijing would have also wanted a Serie A match, but FIFA rules forbid it: they will have a few matches of the national teams and national cups, plus the VAR, which will also be introduced for Chinese referees.
Some companies however they called themselves out. Leonardo for example, in order not to risk American stomachaches, has seen fit not to flaunt his supplies for the Chinese civilian aircraft. Huawei, a global bone of contention, froze his research agreement with an Italian Polytechnic, although cooperation in "telecommunications" remains in the text of the Silk Road memorandum. Elsewhere, on the other hand, an agreement could not be found: Unicredit had to enter Chinese private equity by allying itself with a local bank, nothing to do. As for the joint investment vehicle that Cassa Depositi was to create with the extremely powerful CIC sovereign wealth fund, it seems that there is no agreement on the sectors. On the other hand, Intesa Sanpaolo's Chinese strategy, already announced some time ago, continues, in particular on wealth management activities: the bank and the Municipality of Qingdao have announced the signing of a Memorandum of Understanding.
[smiling_video id="76778″]
[/smiling_video]
Fincantieri also declined, it already has enough orders in China. But, as mentioned, Xi Jinping still brings home a nice booty on the ports: CCCC, its construction colossus, enters both the rear dock of Trieste, the railway junctions that sort the containers towards Europe, and the docks of Genoa. Especially here it could be the bridgehead for other investments. However, the hypothesized agreements on other infrastructures, from railways to electricity grids, seem to have disappeared. The one between Snam rete gas and the Silk Road fund remains, which concerns China and third countries. Made in Italy brings home a little bit, but not a lot: was it due to pressure from the USA and Brussels?
Meanwhile, after the very important meeting on Friday with President Sergio Mattarella, who was the director of this operation, on Saturday Chinese President Xi Jinping was also received by Prime Minister Giuseppe Conte at Palazzo Madama, for the actual signing of the agreements. "Italy and China must set up more effective relations and better build relationships that are already very good," said the premier during the bilateral meeting with Xi at Villa Madama. To sign the main agreements, for the Italian side, it was the Minister of Economic Development Luigi Di Maio. On the other side of the table, the chairman of the National Development and Reform Commission, He Lifeng. The heart of the agreement is the Beijing Silk Road (Italy is the first G7 country to join). The League is cold, Salvini controversial: “Don't tell me that there is a free market in China…”.
