'Italy can learn' from Sino-German business ties

During Renzi's visit, Italy and China released a threeyear action plan covering collaboration in areas of trade, industries and investment, finance, business, tourism and technological innovation.

Romiti says he got to know Renzi when the prime minister was mayor of Florence, and he hopes Renzi will stay in office longer than his predecessors so China's leaders will be able to deal with a known quantity in Italy's leadership.

"I believe our prime minister's visit to Shanghai and Beijing in June helped him know his counterparts at the highest political level in China, which can help boost the presence of China at the Milan Expo," Romiti says.

"And, in turn, it will help boost China's investment in Milan and Italy."

Romiti says Italy has a historic opportunity this year and next with Milan hosting a major meeting of leaders from Asia and Europe as well as the World Expo. He says it is much like the opportunity China had in 2008 and 2010, when Beijing hosted the 2008 Summer Olympics and Shanghai hosted the 2010 World Expo.

Using the upcoming opportunities, Romiti says, China and Italy should focus on collaborating on healthcare, environment, renewable energy, sustainable urbanization and agriculture and food security.

In these areas, Romiti says, Italy can offer know-how to China because it is still the fifth-biggest manufacturing powerhouse in the world and the world's 11th economic power.

Asked for his advice for European investors who are exploring opportunities in China, Romiti offers three tips without hesitation.

"First, don't go alone," says Romiti, who explains that European investors should seek a strategic partner who knows the local business environment, though that doesn't necessarily mean that Europeans should set up a joint venture with local partners.

Second, Romiti says Europeans should "be humble" and not think that China should be taught using European experiences.

"Most of all, your mindset should be that 'I need to learn and need to adjust myself to the local culture and environment'," says Romiti.

Europeans should also give up the idea that China is a lowcost manufacturing center, he says.

"Instead, it is an enormous market that consists not only of coastal and advanced regions but also the inland areas."

Trade surplus skyrockets to hit monthly record	Milan ready to follow lead of Shanghai