The 16th edition of the China Report by Italy China Council Foundation-ICCF was presented on Friday 20 June in the prestigious setting of the Ferrero Auditorium of the SDA Bocconi School of Management, in Milan. At the official event for the release of "China 2025 | Economic and political scenarios: new frontiers for agribusiness between Italy and China' attended by the Consul General of the People's Republic of China in Milan, Liu Kanthe Dean of SDA Bocconi, Stefano Casellithe ICCF President, Mario Boselliand numerous members, entrepreneurs and professionals representing companies that are part of the ICCF network.
Also this year, the study prepared by the ICCF Research Department is divided into two parts, published in spring and autumn, in order to be a usable and up-to-date product. The Report, which also boasts contributions from ICCF members and from this year's authoritative academicsrepresents one of the most comprehensive outlooks on China currently available in Italy. Written in Italian, full of original data and studies, the guide is a useful tool for all those small, medium and large enterprises that want to bring their business to China.
"The complexity of the historical moment we are living through is there for all to see - ha detto Mario Boselli, ICCF President -, exacerbated by the rapidity with which international scenarios are changing around us. Precisely for this reason, our Research Centre's China Report is an essential reference point for companies and individuals wishing to understand the major changes taking place in China and its bilateral and multilateral relations".
IN SUMMARY. The book offers an up-to-date overview of the most recent developments in China, both economically and politically, in order to grasp the main changes taking place and identify possible synergies with our country. It is divided into three chapters, with a domestic economic-political framework, an international economic-political framework and a focus on collaboration and innovation in the agri-food sector between Italy and China.
THE INTERNAL CONTEXT. The first chapter offers an articulate analysis of China's domestic political and economic environment in 2024, complemented by an update on the dynamics observed in early 2025. The tertiary sector continues to be the main driver of economic growth of the country, while high-tech manufacturing and new energy vehicles play a leading role in the secondary sector. In 2024, GDP expanded by 5%supported by a solid export performance and targeted stimulus measures. This growth showed a further acceleration in the first quarter of 2025, reaching 5.4%. However, some challenges remain. Domestic demand remains subdued, with inflation close to zero and persistent signs of deflationary pressure. The real estate sector continues to show downward trends, despite the initiatives promoted by the central authorities. From a political point of view, 2025 represents a crucial year as it marks the conclusion of the 14th Five-Year Plan and the Made in China 2025 programme, whose progress is evident in strategic areas such as artificial intelligence, electric vehicles and renewable energy development. In area of technology The challenge of production and full self-sufficiency in the semiconductor sector remains open. The Two Sessions in March outlined the priorities for the next development cycle: promoting the welfare of the population, stimulating consumption, supporting the private sector, social and health reforms and ecological transition. At the social level, the document points to two emerging phenomena: a growing focus on work-life balance and new expectations on the part of the younger generations, both in the professional sphere and in terms of values. A greater sensitivity to the issue of feminism is also highlighted.
THE INTERNATIONAL CONTEXT. The second chapter provides a broad overview of the international economic and political context with a focus on the role of China: from the evolution of the decade-long Belt and Road to its more recent offshoots (GDI, GSI, GCI). In 2024, China's foreign trade reached record valueswith export growth driven by technology and manufacturing sectors (hi-tech, vehicles, electronics), while imports focused on strategic components such as integrated circuits and minerals. Relations with ASEAN, the EU and the US remain centralASEAN is confirmed as the leading trading partner, while imbalances with the EU and US persist in Beijing's favour. Italy, China's fourth largest partner in Europe, shows a growing trade deficit due to high imports and difficulties in penetrating the Chinese market. On the investment front, investments abroad in 2024 were directed towards energy, raw materials and high-tech, with a focus on ASEAN and Africa. Investments in Europe were concentrated in the electric vehicle sector, especially in Hungary. In contrast, inward investment into China is declining, despite reforms to attract foreign capital into the technology and advanced sectors. In this context, the first months of the year were marked by Trump's return to the White House and the escalation of the tariff war. Relations with the EU appear to be recalibrating while the bilateral relationship with Italy is developing under the aegis of the new Action Plan (2024-2027). Finally, China continues to strengthen bilateral and regional ties in Asia, Africa, the Middle East and Central Asia to consolidate its global strategy in a multipolar context.
AGRI-FOOD FOCUS. The last chapter analyses the evolution and prospects of the Italian and Chinese agri-food sector, with a special focus on trade between the two countries. On the export front, Made in Italy agri-food products reached EUR 70 billion in 2024, with 11% of total Italian exports. Exports to China, although growing (+30% compared to pre-pandemic), remains limited compared to its potential, representing just over EUR 630 million. The most exported products include chocolate, coffee, dairy products, wine, pasta and meat. China, for its part, is highly dependent on food imports (over USD 215 billion in 2024) and is engaged in extensive regulatory and technological reform, culminating in the new Food Safety Law (2023) and the Plan for Smart Agriculture (2024-2028). However, the trade environment is complex: tensions between the EU and China have led to the introduction of reciprocal tariffs on strategic products, including agri-food products. Italian companies are therefore called upon to adopt proactive strategies to tackle tariff and non-tariff barriers, diversify markets and exploit the opportunities offered by China's growing demand for food quality and safety.
In the coming days, all Members will receive the full version of the Report.
For information please write to centrostudi@italychina.org.
