Closing the gap in the trade balance with China is the goal of Emilia-Romagna, reaffirmed by the regional councilor for economic development, Vincenzo Colla , on the occasion of the presentation of the China 2020 Report . The document, presented in Bologna with the Italy-China Foundation , represents an important moment of sharing data to jointly define a long-term commercial strategy.
According to the Report, the trend is improving but the trade balance remains in deficit , while Emilia-Romagna shows a highly positive balance with the rest of the world. The two main items of trade are mechanical production and fashion and this applies to both geographical areas: both Emilia-Romagna and China import and export the same type of products (what economists call intra-industrial trade , which takes place between mature countries of the same economic level and with strong integration).
China is among the main importing countries in Emilia-Romagna, with a total value of approximately 3.56 billion euros in 2019 (9.5% of the total regional imports ), while recording a lower value as an area destination of regional exports, for a value of 2.06 billion euros (3.1% of the regional total ). Although the regional economy is characterized by a marked current account surplus, the trade exchange between Emilia-Romagna and China is therefore still in a negative situation, but with a favorable trend: regional exports to China in 2019 grew by 49.5% compared to 2010, while imports from China only grew by 10%.
Emilian-Romagna exports to China
Mechanical production alone accounted for 62% of the total , followed by the fashion chain (16% of the total). Among the most important specific sectors we find first and foremost machines for general use , which alone recorded 612 million euros in exports in 2019. Other important sectors, with exports worth more than 100 million, include Motor Vehicles (188) and medicines and pharmaceutical preparations (119), two leading sectors of Emilia-Romagna.
Regional imports from China are also mainly concentrated on mechanical production (51%) with an important role also for the fashion industry (24%). The clothing sector is highlighted, which alone recorded 380 million imports in 2019. Foreign direct investments - FDI present in Emilia-Romagna from China are over 70, for a total of about 2,600 employees and an aggregate turnover of 1.4 billion euros (Aida-Bureau Van Dijk, data relating to 2019).
Among the main regional companies controlled by Chinese investors: Ferretti (Yacht) and MCM (Machining Centers Manufacturing), in addition to the commercial Volvo Car Italia. Among the ongoing operations of the last year, and therefore not included in the Aida Burea Van Dijk data just mentioned, there is that of the Chinese Faw in the electric automotive sector .
At the beginning of 2020, Faw, a leading Chinese automotive company, announced that it had chosen Emilia-Romagna to build high-end electric and hybrid cars. This is the first major overseas investment of the Chinese brand and the amount is over one billion euros. The Asian company operates in tandem with Silk Ev , an engineering and design start-up with formal headquarters in the US but operating in the region.
Relations between Emilia-Romagna and China
The 50th anniversary of bilateral diplomatic relations between the People's Republic of China and Italy will be celebrated on 6 November 2020 . Over the last 20 years, the Emilia-Romagna Region has established important relationships with sub-national Chinese levels, aimed at further strengthening institutional relations with a view to mutual benefit.
After the Municipality of Shanghai and the province of Zhejiang , in 2015 the Emilia-Romagna Region and the Guangdong province signed a Memorandum of Understanding to implement exchange and cooperation initiativesin the sectors of trade and investment, technology, environmental protection, culture and tourism.
On 22 October 2019 it was the turn of the province of Shandong , with the signing of a collaboration agreement aimed at economic and commercial development and participation in trade fairs, direct investments, technology transfer, collaboration between universities and research centers , to collaboration in culture, art and tourism.