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.
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