China’s green investments in Italy
Will economic relations between Italy and China rise in the next future? Many events happen in the last decade, demonstrating there are higher possibilities to give a positive answer to the question. The continuous investments in Italian companies by Chinese operators, together with the recent statement of China’s President Xi Jinping to commit the country to reach carbon neutrality by 2060, are all indicators of the positive future for “China’s green investments in Italy”.
China’s investments in Italy were growing until the arrival of COVID-19
Except for 2020 (due to obvious reasons), China’s investments in many countries, including Italy, keep growing at a constant growth rate.
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According to Copasir, Chinese FDI into Italy accounts for 573 million in 2015, and in 2018, 4,9 billion.
While in 2019, 405 groups from Mainland China and Hong Kong acquired a shareholding of 760 Italian companies, with a turnover of more than EUR 25,2 billion, according to the Italian economic and financial newspaper Il Sole24 Ore.
Such a consistent amount of money has been usually invested in energy, networks, and companies with high strategic and innovative potential.
Italy welcomes China’s green investments
The high availability of Chinese liquid assets is helping Italian enterprises to survive in Italy, a nation where companies struggle to grow and become international. In return, Italian companies provide China with unique know-how that has been useful for driving the Chinese green turning point.
Here is some examples of cooperation between Chinese and Italian companies:
- The growth of the Italian photovoltaic market is deeply related to China, which is the main provider of silicon wafers. In 2019, Jeution solar, a Chinese company owned by China National Building Material Group, invested 2 billion euros in Leukos, a consortium of construction, engineering, and services.
- In 2018, China’s State Grid International Development signed an agreement with the Italian energy infrastructure company Snam. The aim of the agreement is to generate electricity in rural China by using Italian biogas and biomethane technologies.
- The Milanese Ladurner Ambiente Spa received two billion euros from the Chinese Zoomlion. The Italian group is specialized in the design, construction, and management of municipal solid waste treatment, while Zoomlion Heavy Industry Science and Technology Co., Ltd. is the world’s sixth-largest and China’s largest construction machinery enterprise. Thanks to this partnership Ladurner could accelerate its internationalization process.
What “green” battles China has taken on?
To lower the amount of CO2 and to give a better life to its population China’s government has been particularly involved in a reforestation campaign. The forest cover has risen from the 8% in the first years of the People’s Republic of China to the 23% in 2019. And, in only 3 years, 5 million trees have been planted in China’s capital Beijing (from 2012 to 2015).
Reforestation isn’t the only instrument China is using to reduce the pollution caused by its huge industrial economy. China is investing in energy conversion and technological innovation. But to achieve better results need the help of foreign know-how, so this is one of the main reasons for Chinese foreign investment.
In addition, in order to have sufficient liquidity and knowledge to reach the mission stated by President Xi Jinping, the government understood it’s necessary for more cooperation among all states and, finally, opened its high market barriers and encouraged foreign investments in Chinese different green industries.
An Italian architect studio is contributing to China’s reforestation
Considering the rapid urbanization growth, China is looking for an innovative solution that can help the country to change the gigantic, urbanized areas into green futuristic cities.
When Studio Boeri Architects completed the first vertical forests in Milan, where the studio is based, the eyes of the world were on this incredible invention. Many cities around the planet have their own version of green architecture made by Studio Boeri nowadays and China asked for a higher number of projects from the studio.
The Chinese urban forestation signed by Boeri Studio started in Nanjing and will continue in other major cities like Shijiazhuang, Shanghai, and Chongqing.
Cannot wait to see the first forest city in the world: Liuzhou Forest City.
If you want to know more about the eco-sustainability market in China, feel free to contact us.