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BLOOMBERG
Prime Minister Giorgia Meloni is getting dragged into the escalating tensions between Washington and Beijing as she tries to disentangle Italy from its close relationship with China.
Meloni, the right-wing leader who came to power less than a year ago, is leaning towards pulling out of an agreement to join China’s controversial Belt and Road Initiative, which has funded $900 billion in infrastructure projects globally, according to people familiar with the government’s thinking. Italian officials raised the prospect of withdrawal in talks with Taiwan, Bloomberg reported.
Italy’s hawkish turn complicates Chinese President Xi Jinping’s effort to drive a wedge between European countries eager to retain economic relations with Beijing, and the US which is implementing increasingly confrontational policies. This puts Italy and the European Union (EU) in a delicate position between the two superpowers.
With US-China relations deteriorating, Beijing is looking to prevent Europe from following Washington, particularly on measures like export controls of key technologies. The EU is struggling to balance a desire to engage with China on trade and investment with resisting economic coercion.
Underscoring the EU’s difficulties, a push by French President Emmanuel Macron to recruit China’s help for possible talks between Russia and Ukraine drew criticism from some allies who think such an effort is premature and fear it could undermine European unity.
Italy’s dilemma on Belt and Road is starting to draw the US government’s attention, said the people who spoke on the condition of anonymity. For Washington and other capitals, it’s a sign of Meloni’s capacity to turn her staunch pro-US rhetoric into facts.
In a speech in Washington, Treasury Secretary Janet Yellen said the Biden administration was prepared to accept economic costs as it sought to protect US national security interests from threats posed by China.
Meloni wanted to have an announcement on Italy’s stance on Belt and Road by May’s G-7 summit, but picking an option is proving harder than expected for her coalition, the people said.