Do Meloni and Urso want to seduce Taiwan by leaving the Silk Road?
Officials from the Ministry of Enterprise met with the Taiwanese authorities to propose a pact: collaboration on microchips in exchange for Italy's exit from China's New Silk Road. But what are the intentions of the Meloni government? And are Taiwanese companies really interested in this "exchange"? Facts, rumors and doubts
Will the Meloni government unload China to attract Taiwan?
According to information compiled by Bloomberg , some officials of the Ministry of Enterprises have discussed with their Taiwanese counterparts a plan for collaboration on the production and export of microchips. The talks took place in Taipei, the capital of Taiwan.
AGREEMENT WITH TAIWAN IN EXCHANGE OF BRI EXIT?
To try to convince the Taiwanese authorities to join the project, it seems that the Italian officials – almost as if in an exchange – have suggested the possibility of withdrawing from the memorandum of understanding on the Belt and Road Initiative (BRI or New Silk Road) signed with China in 2019.
Italy is the only G7 country to have joined the Chinese infrastructure-geopolitical initiative. Precisely for this reason the memorandum, although in itself it has not had significant practical consequences, has great symbolic value for Beijing, which is working on expanding its international presence.
China does not consider Taiwan a separate state but a province of its territory, although it has never governed the island.
THE RENEWAL OF THE MEMORANDUM WITH CHINA
The decision not to renew the memorandum with China – otherwise the renewal will take place automatically, in 2024 – is up to the Prime Minister Giorgia Meloni. Who has not yet made a decision on the matter: in the past he had hinted that he could abandon the agreement; in recent times, however, he has stopped speaking about China and naming the country so as not to create reasons for friction.
Bloomberg writes that the United States, Beijing's rivals, will pay great attention to the choice of the president, who has repeatedly used Atlanticist rhetoric.
BUT DO TAIWANAN COMPANIES REALLY CARE ABOUT CHINA?
According to Bloomberg , the visit to Taipei by officials from the Ministry of Enterprise symbolizes Italy's willingness to deepen diplomatic relations with Taiwan, a very important country in the global supply chain of advanced chips.
– Read also: What is in the Chips Act of the European Union
Lorenzo Lamperti, an Italian journalist based in Taipei and an expert on China, however pointed out on Twitter that “Taiwanese chip companies don't care whether or not Italy is in the BRI. Using this 'leverage' in talks with private parties is useless”.
Just to be clear. Taiwanese chip companies don't care whether or not Italy is in the BRI. Using this "leverage" in talks with private parties is useless.
— Lorenzo Lamperti (@LorenzoLamperti) April 20, 2023
THE SECOND TAIWAN OFFICE IN ITALY
Taiwan intends to open a second representative office (a sort of embassy, in concrete terms: very few governments have formal relations with the island) on Italian territory, in Milan.
THE SINOCHEM-PIRELLI CASE
However, the Chinese economic presence in Italy is a source of concern for the Meloni government, which is working to reduce the influence of the Sinochem conglomerate in Pirelli , of which it is the largest shareholder with 37 percent, without however coming to confrontation with Beijing.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/italia-taiwan-chip/ on Thu, 20 Apr 2023 12:54:21 +0000.