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Record Deals Signed with Italy

An Italian business delegation accompanying visiting President Carlo Ciampi clinched big deals in China Monday.

The Italian delegation came after their French counterparts notched up an array of deals worth of 4 billion euro (US$5.2 billion) in October, and was followed by German entrepreneurs who arrived together with German Chancellor Gerhard Schroeder on Monday.

Although the total investment figure of the signed deals has not yet been worked out, "it will be considerable," said a member of the Italian delegation, who did not give his name.

The deals cover a wide range of sectors such as energy, infrastructure construction, transportation and telecommunications.

Skylogic, under Eutelsat, one of the world's leading satellite operators,Monday signed a partnership agreement with China Satellite Communications Corporation, a major Chinese telecommunications operator.

The two partners will kick off co-operation in 2005 after approval by authorities in the respective nations.

They will begin to provide satellite communications services for businesses, governments and media of both sides when the time is ripe.

Giuliano Berretta, chairman and managing director of Eutelsat, said: "The project is expected to facilitate relations and interchanges between the two countries' satellite communications sectors."

Pirelli, an Italian tyre manufacturer, will establish a joint venture in Central China's Henan Province next year, with Chinese partner Shanghai-listed Aeolus.

"Our investment in the joint venture will amount to nearly US$200 million in the coming three years," said Francesco Gori, president of Pirelli's tyre business.

Leading Italian automaker Fiat has also vowed to increase its presence in China by launching new models of vehicles, Luca di Montezemolo, the president of Fiat, told China Daily.

The company is the largest Italian investor in China.

Italian companies have also expressed interest in taking advantage of the Beijing Olympic Games, to be held in 2008, saying they are ready to provide financial and telecommunications services for the event.

Statistics show that nearly 500 Italian enterprises do business in China, and they invested US$300 million in the Chinese market in 2003, up 80 percent on a yearly basis.

In addition to China's coastal provinces, which have attracted the most investment from foreign companies, Italian enterprises are also considering investing in Northeast and western China.

The Italian companies' spending spree comes as major European countries are making moves to penetrate an increasingly growing Chinese market.

China, in line with its World Trade Organization commitments, will open up more sectors to foreign investors, and has attracted the world's leading multinational corporations.

Italy surely does not want to lose such an emerging market.

"China's fast-growing market provides big room for Italian enterprises," said Beniamino Quinieri, president of the Italian Trade Commission.

(China Daily December 7, 2004)

 

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