Italian deputy PM talks up autos ties with China amid EU trade tensions

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BEIJING (Reuters) -Italy’s deputy prime minister talked up cooperation with China in the auto industry during an interview with state news agency Xinhua, even as Beijing faces scrutiny from the European Union over extending unfair subsidies to its carmakers.

Matteo Salvini, who is also Italy’s transport minister, said “the two countries enjoy broad prospects for cooperation in automobiles, smart roads and other transport areas,” according to an interview published on Friday.

“When we are working to raise train speeds to 300 km per hour, China is already exploring 400, 450 and even 500 km per hour, while also advancing in autonomous driving, artificial intelligence and innovation,” he was quoted by Xinhua as saying during a visit to China.

Despite voting in favour of the European Commission’s 2024 decision to slap tariffs on Chinese electric vehicles, Italy has tried to stay in Beijing’s good books – consistently talking up the merits of Chinese firms and investment in Europe.

By keeping the door open to more Chinese investment, Prime Minister Giorgia Meloni managed to burnish ties with Beijing during a visit last July, even after announcing that the euro zone’s third-largest economy would leave President Xi Jinping’s flagship ‘Belt and Road’ infrastructure initiative.

Salvini told Xinhua that he saw “great potential” in infrastructure development.

China and the European Commission, which handles trade policy for the 27-strong bloc, are embroiled in trade tensions that analysts attribute to Brussels’ decision to impose import tariffs to ward off a flood of cheap Chinese electric vehicles.

Beijing has retaliated by placing anti-dumping duties on European pork and brandy, and by probing its dairy sector.

(Reporting by Joe Cash; Editing by Lincoln Feast.)