Posted on 03/31/2019 3:42:01 PM PDT by CondoleezzaProtege
The Italian fanfare over Chinese President Xi Jinping’s recent visit illustrates how anxious Prime Minister Giuseppe Conte is to bolster the Italian economy by welcoming China’s Belt and Road Initiative (BRI) into Italy.
He expects these Chinese commitments to translate into real investment that will generate jobs and boost exports to China. Importantly, by restoring Italy’s ancient role as the gateway to and from Asia, Chinese investment can improve transport within Italy and on to Europe, adding to Italy’s services economy as well.
Italian and Chinese entities signed several agreements committing to future financing, trade, joint construction projects and cooperation in international fora.
Briefly, an Italian lender will be able to raise funds in China by issuing yuan-denominated bonds to Chinese investors while the Bank of China will lend to Italian companies...
While European leaders are loath to admit this, they likely fear that they will not be able to control or even know the details of Chinese involvement in the Italian economy.
Other important details are missing or not revealed. What will be the financial agreements that will underpin BRI investments in Italian ports, railroads, roads and related services? Asian countries have already raised fears that Chinese investments lead to high debt and loss of domestic control.
These same concerns are front and center for U.S. officials. Potential Chinese involvement in Italian communications networks will raise fears regarding network security in Europe and then in the United States...
(Excerpt) Read more at thehill.com ...
I think it was Lenin who said “the capitalists will sell us the rope with which we will hang them”.
Italy’s Deal With China Signals a Shift as U.S. Influence Recedes
The Chinese are putting those billions of dollars from their trade surplus to good use.
Mercantilism is alive and well.
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