国际事务研究院-意大利中国的“一带一路”倡议：金融合作分析（英文）-2021.5-23页_562kb

Summary of China's Belt and Road Initiative in Italy: An Analysis of Financial Cooperation

Core Content

The document provides an analysis of the financial cooperation between Italy and China within the context of China's Belt and Road Initiative (BRI). It outlines the nature, scope, and implications of the bilateral agreements signed between Italian and Chinese financial institutions, focusing on their strategic importance and potential risks.

Main Points

• Financial Cooperation as a Key Component of BRI: Financial cooperation is highlighted as a crucial element in strengthening bilateral economic ties. The 2019 Memorandum of Understanding (MoU) between Italy and China was a significant step in this direction, with a specific focus on financial collaboration under the BRI framework.

• Existing Financial Ties: The MoUs appear to be an extension of pre-existing financial partnerships rather than a new development. Italian financial institutions have long been collaborating with Chinese counterparts, and the BRI-related agreements do not significantly alter this trend.

• Key Financial Institutions Involved:

  • Intesa Sanpaolo: Has a long-standing presence in China, including a representative office in Beijing and a branch in Shanghai. It has partnered with Chinese institutions such as BoC and EXIM Bank, and launched a wealth-management pilot in Qingdao.
  • UniCredit: Has also been active in China, with a focus on expanding its operations in Central and Eastern Europe (CEE) in collaboration with Chinese financial institutions.
  • Cassa Depositi e Prestiti (CDP): A major Italian financial institution, CDP has been involved in several BRI-related agreements, including the issuance of Panda bonds and the establishment of a revolving credit facility with Italian banks.

• Panda Bonds as a Symbolic Tool: Panda bonds, which are renminbi-denominated bonds issued by foreign entities in China, have been used by CDP to finance Italian enterprises operating in China. While the issuance is small compared to Italy's overall public debt, it has symbolic value and helps Italian firms access the Chinese market.

• Risks and Concerns:

  • Debt Dependency: There are concerns that Chinese banks may dominate BRI financing, potentially leading to financial dependency.
  • Market Distortions: The involvement of Chinese policy banks could create market distortions due to their access to public funds.
  • EU Unity: The document notes that Italy's participation in the BRI may weaken the EU's unified approach to China, affecting the Union's negotiation leverage.

• Mitigating Factors:

  • The Asian Infrastructure Investment Bank (AIIB) is included in the BRI framework, offering a more transparent alternative to Chinese policy banks.
  • Italy's national debt held by non-Eurozone entities is minimal (about 7%), reducing the risk of financial dependency.
  • The Italian financial system has protective mechanisms, especially due to its EU membership, which limit the potential for strategic influence.

Key Financial Agreements

• Intesa Sanpaolo and Qingdao:

  • Signed an MoU in March 2019 to support wealth-management activities.
  • Plans to establish a securities company with a 51% capital share.
  • Already has a presence in Qingdao, including a joint venture with BoC and EXIM Bank.

• UniCredit and EXIM Bank:

  • Signed an MoU in 2019 to support business opportunities between Chinese and Italian/CEE firms.
  • Launched the China-Italy Industrial Cooperation Fund (CIIF) with ICBC and Investindustrial in October 2020.

• CDP and Panda Bonds:

  • Signed an MoU in March 2019 to issue Panda bonds and support Italian companies in China.
  • First Panda bond issuance in July 2019 for 1 billion renminbi (146 million euro), with a 4.5% coupon rate.
  • Plans to issue another tranche in the near future.
  • Panda bonds represent only 0.65% of CDP's total bond funding in 2019.

• SACE-SIMEST and Chinese Firms:

  • Signed MoUs with China Export and Credit Insurance Corporation and SUMEC to support Italian SMEs in China.
  • Aimed to reach 1 billion euro in support over three years.

Conclusion

While the BRI-related MoUs have facilitated some financial cooperation between Italy and China, they have not led to groundbreaking developments. The cooperation is largely based on existing trends and does not currently pose a significant risk to Italy's sovereignty or economic independence. However, there are concerns about the potential erosion of the EU's unified stance on China and the risk of financial dependency. The inclusion of the AIIB in the framework helps mitigate these risks, and Italy's limited exposure to external debt reduces the likelihood of debt traps. Overall, the financial cooperation between the two countries remains moderate and does not justify major concerns at this stage.