Italian officials hinted in private talks with Taiwan that they might be willing to pull out of a controversial pact with China as they sought to secure help with semiconductors, people familiar with the issue said.
Officials from the Italian Ministry for Business and Made in Italy discussed plans to increase cooperation on the production and export of semiconductors during recent meetings in Taipei, said the people who asked not to be named as the talks are not public.
The officials told their Taiwanese counterparts that Italy might scrap its participation in China’s Belt and Road Initiative, a massive global infrastructure program.
Photo: AP
A decision on the matter would have to be taken by Italian Prime Minister Giorgia Meloni, who has not taken a final position, the people said.
Italy is the only G7 country that has signed up to the Chinese scheme.
Even though the memorandum of understanding has had little practical impact since it was signed by former Italian prime minister Giuseppe Conte in early 2019, it has a highly symbolic value for Beijing at a time of mounting tensions with the US and allies.
The agreement would be automatically renewed in 2024 unless Italy ditches it.
A spokesperson for the ministry declined to comment.
The visit by senior officials showed that Italy is willing to deepen diplomatic relations with Taiwan.
Taiwan aims to open a second representative office in Italy, in Milan, local media reported.
Italy’s decision on the memorandum of understanding would be closely watched in Washington and other capitals as a sign of Meloni’s capacity to turn her staunch pro-US rhetoric into facts.
Meloni and officials from her far-right Brothers of Italy party have in the past criticized China’s stance on Taiwan, but since taking office at the end of last year, Meloni has avoided public references to the matter, as the EU struggles to balance security concerns with deep economic ties to China.
Earlier this month, a group of Italian lawmakers scrapped a trip to Taipei at the last minute.
French President Emmanuel Macron sparked outrage among partners earlier this month by suggesting that the bloc should avoid being dragged into a dispute with Beijing by the US.
Macron said after a visit to Beijing that the bloc should not become a “vassal” in a US-China clash.
Meanwhile, a case involving tire maker Pirelli SpA offers the Italian government another opportunity to scale down economic ties with Beijing.
Italian officials are studying ways to curtail the influence of China’s Sinochem Group (中化集團), Pirelli’s largest shareholder.
The supply of semiconductors is key for the EU and the US to reduce exposure to supply chain disruptions amid growing tensions with China. Italy is particularly dependent on the supply of semiconductors, which are crucial for its automotive industry.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
RSS