Meloni May Signal Plan to Exit China Pact During US Visit

Italian Prime Minister Giorgia Meloni could notify the US as soon as this week about her plan to pull Italy out of a controversial investment pact with China, according to people familiar with the matter.

(Bloomberg) — Italian Prime Minister Giorgia Meloni could notify the US as soon as this week about her plan to pull Italy out of a controversial investment pact with China, according to people familiar with the matter.

Meloni is set to discuss the issue when she meets US President Joe Biden at the White House later this week, the people said, cautioning that a final decision has not been taken yet.

The plan was previously reported by daily La Repubblica. A spokesperson for the Italian government declined to comment.

Bloomberg reported earlier this year that Italy had reassured allies about Meloni’s intention to pull out of the project, known as the Belt and Road Initiative.

Italy signed onto the infrastructure initiative in 2019 when Giuseppe Conte was premier, becoming the only Group of Seven country to join.

While Meloni, elected at the end of last year, has opposed the deal she’s struggled to take a clear line on the issue, possibly wary of retaliation from China. The pact renews automatically in 2024 unless Rome acts to pull out.

More stories like this are available on bloomberg.com