Commercial Relations Between Italy and China from the Past to the Future

This chapter presents the evolution of the commercial relations between Italy and China in the last hundred years. After presenting some information on the little known interaction before the Second World War and the slow and politically sensitive start of trade relations with the People’s Republic of China, it analyses the evolution of bilateral trade and direct investments after 1978, subdivided into three periods characterised by a different economic environment and character in international relations. The consequences of this evolution are seen both on the trend of bilateral trade and on the effect that China’s growth had on the competitiveness of Italian companies in the world markets and in their reaction to it. Finally, the immediate impact of Covid-19 is assessed by giving updated information on the trend of bilateral trade in 2020. The growing size and importance of the bilateral trade and particularly of China as source of Italian imports are the most evident aspect that transpires from this analysis. Another important factor that emerges in assessing the evolution of the commercial relations between the two countries is the role that geopolitical forces played and play in shaping it.