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Italian Firms Encouraged to Invest in China
The Italian Government has encouraged its firms to tap the business potential of China's vast western region.
"The Italian Embassy in Beijing pays very close attention to the infrastructure and environmental protection projects in China's western area," said Stefano Taliani, economic and commercial counsellor of the embassy.
The Italian Government has set up a mixed loan package of 187 billion lira (US$85.48 million) for Chinese firms, he told a press conference jointly organized by the Italian Trade Commission and the Italian Machine Tools Robots and Automation Manufacturers' Association (UCIMU).
Most of the mixed loan has still not been used and the Italian Government encourages China's small- and medium-sized enterprises, especially those from the western region, to use the loan, Taliani said.
The mixed loan is 54 per cent a long-term loan with low interest rates, and the remaining 46 per cent is in export credits.
Taliani believes China's entry into the World Trade Organization will create more business opportunities for Italian firms.
While admitting that traditionally, Italian firms have focused their investment in the coastal areas of China, Taliani said they have already shown great interest in projects in China's western region and have become involved in some projects there.
According to the Beijing Office of the Italian Trade Commission, Sino-Italian trade was worth US$688 million in 2000, an increase of 22.4 per cent from 1999.
Machinery and related equipment make up the lion's share of Italian exports to China. In 2000, Italian exports of machine tools to China were worth US$83.8 million, accounting for half of Italy's total machine tool exports to Asia.
UCIMU President Andrea Riello predicted Italian exports of machine tools to China will continue to expand, because the "Chinese market is very large."
China's rapid economic growth will further increase its participation in international trade, he noted.
He Dekang, deputy secretary-general of the China Machine Tool and Tool Builders' Association, said the Chinese Government's decision to vigorously develop its Western areas and its active fiscal policy are major reasons why the ongoing 7th China International Machine Tool Show has attracted so many overseas exhibitors.
At the exhibition, over 1,100 companies from 25 countries and regions are displaying their latest technologies and products in a total exhibition area of more than 70,000 square metres, hoping to further promote trade and co-operation.
In 2000, China's imports and exports of machine tools increased by 27.4 per cent and 28.94 per cent respectively from 1999. In the January-February period of this year, the country's machine tool imports rose by 34.7 per cent while exports grew by 15.6 per cent, He said.
He predicted China's machine tool market will continuously expand during the 10th Five-Year Plan period (2001-05) as more key State projects are launched.
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