The Political Economy of Italy's Relations with China

Sino-Italian bilateral relations are eminently economic in their focus, with trade and investments working as the main drivers of engagement. Two distinctive features have marked economic interaction in recent years: a pattern of asymmetrical competition, and an asynchrony of opportunities in bilateral trade and investment flows. Between 2009 and 2011, however, Sino-Italian relations underwent important changes. Against the background of the global financial crisis, China might become a key source of foreign investments for Italy. In addition, China's efforts to promote domestic demand under the twelfth Five-Year Plan might create unprecedented opportunities for Italian exports.