When it comes to China, European countries are loosening their belt.

Hello and you're listening to the Marketplace Morning Report live from the BBC World Service.

I'm Leanna Byrne.

Thanks for tuning in.

In China's first encounter with EU leaders I'm Leanna Byrne. Thanks for tuning in.

In China's first encounter with EU leaders in four years, China's President Xi Jing Ping says

the EU needs to work with China for global stability, but here's where things get awkward earlier this week the EU

said that a plan to reduce its economic dependence on China something referred to

by the bloc's president Ursula von der Leyen.

We will discuss how to re-balance our economic relationship.

China is the EU's most important trading partner,

but there are clear imbalances and differences that we must address.

Ersel von der Leyen there.

And this meeting also comes a day after Italy announced that it's leaving China's

belt and road initiative, which is China's massive plan to help build roads, bridges and other projects and countries around

the world to boost trade.

Michelle Garazzi was the Undersecretary in Italy's Ministry of Economic Development when the

decision to join was made in 2019 he thinks the Italian

government is wrong to pull out. The rationale for Italy to join the

Belt and Road was to offer those Italian Small Medium Enterprise is an umbrella of protection so that they could compete better in the extremely difficult market of China, Asia and Africa.

Because by themselves they face very tough competition from the Siemens, Airbus and so on.

Now it is completely wrong decision because there are now alone in this very difficult market in those continents.

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