Economy
China's big aid package helps Italy
By Gao Changxin and Ding Qingfen (China Daily)
Updated: 2010-10-08 11:39
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BEIJING - China's 4-trillion-yuan ($586 billion) stimulus package and fast economic growth will continue to help Italy crawl out of Europe's debt woes, Italy's chief trade commissioner in Beijing told China Daily.
The trade commissioner also said he is confident Premier Wen Jiabao's official visit to the southern European nation will push bilateral economic relations to a new high.
"Italy has benefited a lot since the financial crisis and is benefiting from China's stimulus package", as infrastructure projects included in the package have created huge opportunities for Italy's machinery manufacturers and boosted exports to China, said Antonino Laspina, chief trade commissioner and coordinator in China with the Italian Institute for Foreign Trade.
In 2009, Italian exports to China dropped by only 5.3 percent year-on-year, while Chinese exports to Italy were down about 24 percent.
During the past eight months, Italian exports to China grew 28 percent, and exports of machinery contributed about 60 percent of total Italian exports to China, said Laspina.
Italy has been hurt by the ongoing European debt crisis - with the unemployment rate hitting 8.4 percent in July, according to Italian news agency ANSA. And analysts do not expect the rate to go down in the near future.
While Italy is still in an economic recession, Laspina said he believes cooperation with China will play a "positive role" in Italy's economic recovery.
China's economy grew about 11 percent year-on-year to surpass 17.2 trillion yuan in the first six months, according to the National Bureau of Statistics.
Buoyed by strong economic growth, Italian exports to China will continue to surge, not only in machinery but in plastics, luxury, textiles and wine, Laspina said.
While the China-Italy trade volume in 2009 dipped 18 percent amid the crisis to about $31 billion, it bounced back in the first quarter, posting an increase of 34 percent, according to the Ministry of Commerce.
Compared to those from other nations, Italian companies suffered less because of the Chinese market, as many Italian goods target mid- and high-end consumers yet those groups in China were less affected by the financial crisis.
"(With) 300 million middle-class, the Chinese market is definitely going to be one of the most important markets for Italian designer clothes, automobiles and other luxury goods," Laspina said.
More investment
Besides growing exports, ballooning Chinese investment in Italy is also giving an injection to Italy's economic recovery.
"There is more and more Chinese investment in Italy," he said.
According to Invitalia, the Italian official agency for promoting overseas investment and enterprise development, 38 Chinese firms had operations in Italy at the end of last year, mainly in the auto, logistics and machinery sectors.
"Italy's excellent design expertise, brands, innovation and technology are exactly what Chinese companies lack when they look to go from quantity to quality," he said.
"Italy's strategic position as an important sea gateway to Europe can help Chinese companies further tap the European market after they take hold in Italy."