Last year was the Year of Italy in China. Italy held hundreds of exhibitions and activities in Beijing as well as in many other areas of China to highlight the cooperation of the two countries in fields such as culture, education, scientific research, art and environmental protection. Based on last year's achievements, Maurizio Forte, head of the Italian Trade Commission Shanghai office, discusses the outlook for Sino-Italian trade and investment.
Q: What are the advantages for Chinese investors in Italy? Are there policies particularly for Chinese investors to better invest in Italy?
A: Italy is the gateway to Europe and the best location for Chinese companies to invest, especially in the sectors of information communications technology, machinery, automotive, logistics and tourism.
Italy's strategic location in the heart of the Mediterranean and the well-built logistics network and infrastructure system provides a favorable business environment for Chinese investors that already recognize the importance of developing their presence in the logistics infrastructure sector in Italy.
One of the main advantages for Chinese investors in Italy is therefore the possibility to get natural access to three important markets Europe, the Balkans and the Mediterranean.
Another important advantage is the availability in Italy of favorable operational conditions with low business costs. Recent surveys show that, despite the euro appreciation, overall business costs in Italy over the last two years have remained lower than in the United States and its other main competitors. In particular, Italy's main strength, universally recognized, is the quality of its skilled people.
Supporting and incentive policies are also available to investors in Italy, such as the location agreement. Offered by Sviluppo Italia (the National Agency for Enterprise and Inward Investment Development), the Ministry of Industry and the Ministry of Economy to support economic development and job creation, especially in southern Italy, the location agreement is the most effective tool for helping investors to set up a business in Italy.
The investor, Sviluppo Italia, and Italian local, regional and national authorities sign the agreement guaranteeing infrastructure and industrial sites, implementation timeframe, support for R&D and training activities and incentives.
Q: What is the outlook for Sino-Italian investment and Chinese investment in Italy?
A: The outlook for Sino-Italian trade exchange and investment is very good. Along with the strengthening of relations between the two countries we foresee further development in import-export volume and investment flow in both directions.
In 2006, the two countries celebrated the Year of Italy in China, with impressive cultural and commercial events highlighting the long history of relations between the two cultures as well as underlining the excellence and uniqueness of Italian products. We expect extremely positive feedback and enhanced commercial and cultural relations between the two countries as an outcome of this special celebration.
Q: Some companies like COSCO, Jac Anhui and Chang'an have already set up investments in Italy. What are their comments about investing in Italy? And what is their operation situation in Italy?
A: COSCO, a giant specialized in shipping and modern logistics, has localized in Genoa and says it chose Italy for its outstanding logistics system and the excellent infrastructure.
In Italy, Chinese investors can also find an excellent and comprehensive system for education and science-technology research and development. Chang'an, for example, has set up a design centre in Italy in order to improve the quality of its product, enhancing its competitiveness in international markets. Chang'an preferred Turin for its strong tradition in the automotive sector and the excellence in R&D of its automotive components.
Q: How do Italian companies react to Chinese investment in Italy? Do they see Chinese firms as a threat?
A: It's true that much has been said as to whether China represents a threat or an opportunity for Italy and also the rest of the world in general.
It is known that globalization has both positive and negative effects and governments and international organizations play a critical role in maximizing the benefits of foreign direct investment (FDI) for both developed and developing countries. However, it is clear that FDI can represent a strong drive for innovation, growth and employment, especially for those countries that are able to attract investments targeting sectors consistent with their national development policies.
In 2004, Italy included China among the countries it was seeking investment from.
China was targeted in the Invest In Italy strategy. It aims to attract Chinese investment, particularly in the sectors of logistics, automotive, machinery and tourism.
Invest In Italy opened a specialized desk in the Italian Trade Commission Shanghai office for Chinese investors, and set up an investor scouting network unit in Beijing.
Italy warmly welcomes investment from China and invites Chinese companies to do business in Italy.
Q: Do you have more plans for promoting Sino-Italian investment? What are they?
A: Of course. Given China is part of the Invest In Italy strategy we will continue to promote investments in Italy from China, enhancing information exchange with local actors and government organizations involved in foreign investment, pushing ahead with the organization of promotional events dedicated to the target sectors (logistics, automotive, machinery and tourism) and boosting scouting activities.
Sino-Italian cooperation in the field of foreign investment has been strengthened and we have issued the Italy Country Report in Chinese.
The Guide to Investments in Italy will be a further promotional tool available to potential Chinese investors.
Q: Have there been any problems for Chinese investors in Italy? Has the Italian government taken specific measures to solve those problems?
A: No, Italy welcomes Chinese investors and offers them a legal and economic environment competitive with other EU countries.
Foreign investors in Italy don't complain of any particular problems.
They enjoy first-rate logistics infrastructure, access to a big and sophisticated market in Italy and to a much bigger market in Western Europe, Eastern Europe and the Mediterranean and a unique quality of life.
(China Daily January 23, 2007)
