Italian Prime Minister Giorgia Meloni announced that Italy will no longer participate in China’s Belt and Road Initiative (BRI). This decision delivers a significant setback to China’s ambitious project that aims to expand its geopolitical influence through infrastructure investment. Italy was the only G-7 nation to have joined the trillion-dollar project, and Prime Minister Meloni had admitted that the expected results were not delivered.
The memorandum of understanding between Italy and China, which was part of the BRI, was set to expire in March 2024. However, Italy decided to pull out of the project much earlier. This announcement came after reports emerged of Ms. Meloni’s government informing Chinese authorities of its decision. The BRI, launched by Chinese leader Xi Jinping a decade ago, has faced resistance from several world leaders, especially amid concerns about the large loans provided to low and middle-income countries and their impact on the global economy.
The BRI has been met with growing skepticism in the West, with critics labeling it “debt trap diplomacy,” as certain countries face unsustainable debt obligations. Leaders of the G-7 have sought to counter the BRI with a global infrastructure program. While China’s infrastructure program is not a priority for Italy, its withdrawal from the BRI is not expected to harm the relationship with China. Leaders from various countries have been openly critical of the BRI, highlighting its perceived failure to deliver the intended results.