Trade War Intensifies, Italian Trade Agency Head Warns: "China is Like a Train Coming at Us"

(CNA, Rome, by reporter Huang Ya-shih, June 9) As trade competition between the European Union and China intensifies, Matteo Zoppas, president of the Italian Trade & Investment Agency, warned today that Italian companies must accelerate their response to the trade war with China, stating, "China is like a train coming right at us."

In an interview today with Italy's leading financial newspaper, Il Sole 24 Ore, Zoppas noted that Italian companies "haven't lost" the trade war with China yet and perhaps have 5 to 10 years to respond. He attributed this to a difference in "brand and technology" positioning between the two sides, as consumers need time to discover and accept new Asian products.

However, Zoppas warned that Italian companies must speed up their efforts. "If we continue on this trend, consumers will eventually get used to Chinese-made products because they are cheaper."

Zoppas said that China, once a contract manufacturer, has now become a production expert. Chinese goods not only compete with but in many cases are replacing Western products, and it's necessary to understand the underlying connections and structural factors behind this phenomenon.

"What is worrying is not just the decline in Italian exports to China, but also the potential for Chinese products to replace Italian products in other markets," Zoppas stated. Previously, China needed to use Italian technology, but now China has developed its own innovation, R&D, and design capabilities."

He analyzed that currently in the Italian market, some Chinese products are of good quality but lack high visibility, and the consumer experience has not yet built sufficient brand recognition. However, more and more people will try them, and consumers will realize that Chinese goods are 30% cheaper. "For now, we are still one step ahead, but we must act cautiously and pick up the pace. This is a gradual phenomenon."

Speaking on the difficulties faced by Italian companies due to China's low-price competition, Zoppas said that Italian manufacturers need to readjust their prices, or they will lose customers. To avoid a decline in sales, entrepreneurs are bearing the costs themselves. Sales growth is driven by discounts and promotions, but the price paid is sacrificing investment in marketing and R&D.

He explained that the Italian government must consolidate its current market position and support entrepreneurs, looking towards regions with the greatest demand and opportunities. "Our goal is to maintain export volume and increase annual export value to €700 billion (approximately NT$25.5 trillion)." This is all part of the Ministry of Foreign Affairs' export plan. In addition to opening new markets, Italy can also adopt various different strategies for existing markets.

Zoppas pointed out that currently only 120,000 to 130,000 Italian companies are engaged in export activities, indicating huge market potential. The agency has strengthened its promotional efforts, and it is in this context that small and medium-sized enterprises especially need practical solutions to address critical issues.