Italy Signed a Memorandum of Understanding (MoU) with China

Italy's Prime Minister Giuseppe Conte signed a memorandum of understanding (MoU) with Chinese President Xi Jinping in Rome, endorsing the global infrastructure-building scheme of

China.

• Despite the warnings and pressure from the US and the Europen Union, Italy has joined China's mega connectivity scheme and has become the first G7 country to do so.
• Italy is the thirteenth European Union country and also the first from Western Europe to join China's Belt Road Initiative.

Italy's reason for joining the initiative:

• Italy has stated that its participation in the initiative through a non-binding agreement was aimed to "rebalance an imbalance" in Sino-Italian trade.
• There are a lot of 'Made in China' coming into Italy and too little 'Made in Italy' that goes into China.
• Italy hopes for a substantial and gradual increase in exports to balance out the trade imbalances.
• The decision of Italy is seen as an attempt to address its financial woes which has onerous public debt.
• Italy fell into recession at the end of last year.
• The agreement is seen as a trade off wherein Italy needs investment and China has those investments to provide to Italy.
• The agreement will aid Italy to underpin and strengthen its business ties with China.

One must know:

• The paper released by the EU's diplomatic arm referred to Belt Road Initiative as a "systemic rival" and has threatened to tighten regulations on Chinese investment in Europe.

Question:

Q. Which country has joined China's Belt Road Initiative and has become the first G7 country to do so?
a. Italy
b. Spain
c. Denmark
d. Hungary