{"id":88555,"date":"2023-12-07T23:18:56","date_gmt":"2023-12-07T23:18:56","guid":{"rendered":"https:\/\/celebritytidings.com\/?p=88555"},"modified":"2023-12-07T23:18:56","modified_gmt":"2023-12-07T23:18:56","slug":"chinese-economy-takes-another-hit-as-italy-pulls-out-of-new-silk-road-project","status":"publish","type":"post","link":"https:\/\/celebritytidings.com\/world-news\/chinese-economy-takes-another-hit-as-italy-pulls-out-of-new-silk-road-project\/","title":{"rendered":"Chinese economy takes another hit as Italy pulls out of New Silk Road project"},"content":{"rendered":"

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Italy has formally withdrawn from China\u2019s global Belt and Road initiative in a further blow to China’s ailing economy. Italian Premier Giorgia Meloni<\/span> had previously signalled Italy would withdraw from the agreement, which was up for renewal.<\/p>\n

Milan daily Corriere della Sera reported that a letter with the formal notice had been delivered to Beijing in recent days. Meloni\u2019s office declined to comment on the report.<\/p>\n

Italy became the first G7 country to sign up to the initiative in 2019, when the populist, anti-establishment Five Star Movement party-led government promoted it as a way of boosting trade with China while getting investments in major infrastructure projects. But neither materialised.<\/p>\n

In the intervening years, Italy\u2019s trade deficit with China has ballooned from \u00a317billion (20bn euros) to \u00a341bn (48bn euros). Investments in Italian ports once hailed in newspaper headlines were never realised.<\/p>\n

Ms Meloni, who was in opposition at the time, was against the deal from the start. Italy’s foreign minister, Antonio Tajani, said this summer his country had not “obtained great results” from the pact.<\/p>\n

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Analysts said Italy had little incentive to continue with the deal and that China can fall back on the face-saving narrative Italy dropped out under pressure from the US.<\/p>\n

The Belt and Road initiative sees Chinese companies building transportation, energy and other infrastructure overseas funded by Chinese development bank loans.<\/p>\n

It has built power plants, roads, railroads and ports around the world, deepening China\u2019s relations with Africa, Asia, Latin America and the Middle East.<\/p>\n

It is a major part of Chinese President Xi Jinping\u2019s push for China to play a larger role in global affairs. More than 150 countries have signed Belt and Road agreements with the Asian giant.<\/p>\n

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China has been grappling with sluggish foreign trade this year amid slack global demand and a stalled recovery despite the country\u2019s reopening after its strict COVID-19 controls were lifted late last year.<\/p>\n

The country’s exports rose in November, the first increase since April, while imports fell, according to customs data released on Thursday (December 7).<\/p>\n

Exports rose 0.5 percent from a year earlier to \u00a3232bn ($291.9bn) in a sign demand may be picking up after months of decline. Imports fell 0.6 percent, to \u00a3177.6bn ($223.5bn), after climbing three percent in October.<\/p>\n

Trade with Japan, Southeast Asian countries, the European Union and US has declined this year. Demand for Chinese exports has been weak since the Federal Reserve and central banks in Europe and Asia began hiking interest rates<\/span><\/span> last year in a bid to cool inflation at historic highs.<\/p>\n

China\u2019s property sector also remains a drag on the economy, with sales slumping and developers struggling to pay down huge levels of debt.<\/p>\n