Italian companies zero in on the Chinese market
Source: China Daily Date: 2007-04-20
Trade relations between China and Italy mainly revolve around imports and exports, but according to an Italian official this is likely to change.
"The faster China's economy rises, the more Italian companies will follow the trend of investing here," Antonino Laspina, trade commissioner with the Italian Trade Commission (ITC), told China Daily in Beijing.
And "Italy will be a good gateway to expand business into the European Union (for Chinese companies)," he said.
The ITC is a government-sponsored organization that promotes Italian business overseas. It has over 100 offices globally including six in China.
Since 2000, China-Italy trade has seen annual growth of 22 percent. In 2005, bilateral trade reached $18.62 billion, increasing by 19 percent compared with the previous year. In the first half of last year alone the figure was $13.39 billion.
"The annual growth rate in the future will easily stand at over 30 percent," said Laspina.
The main drivers are finished goods from Italy, including luxury goods and machinery products, which contribute 60 percent of the nation's China exports, while textiles, electronic goods and toys are imported from China, he said.
"For Italian companies there will be two strategies. One is still finished goods. The other is transferring manufacturing into China making products tailored for Chinese combined with Italian styles and concepts," said Laspina.
"More consumers here are aware of quality and brand, and now they can afford them at the right prices," he said.
Laspina said that although investment initiatives from Italian enterprises into China have been going well, it was "not a big push".
He predicted "tremendous growth of investment from fashion sectors into China like wine, furniture, food, clothes and shoes".
Italy differentiates itself from other EU members through its small- to medium-sized enterprises. Laspina said they were "all targeting niche markets, and made-in-China will make their products more competitive".
He also said he expected more Chinese firms to invest in Italy.
"As the European Union has been expanding east, Italy is geographically close to the center of the region, which will help Chinese companies conquer EU markets if they would like to invest in Italy," he said.
