China-Italy Relations: Rare Response from Beijing & Chinese Business Wars in Prato
Prato, Italy – A surge in violence linked to Chinese mafia groups operating in the Tuscan city of Prato is raising concerns about the expansion of transnational crime and potential links to Beijing, according to Italian prosecutors and recent reports. The conflict, centered around control of logistics and distribution networks within the fast fashion industry, has prompted calls for increased resources and intervention from Rome.
The escalating tensions, described by Prato prosecutor Luca Tescaroli as a “hanger war,” involve rival factions vying for dominance in a market estimated to be worth €100 million ($115 million). The violence includes arson attacks, stabbings, and intimidation, mirroring a pattern reminiscent of the rise of the Corleonesi mafia clan in Sicily, .
The core of the dispute revolves around exploiting a loophole in EU customs law – known as “regime 42” – which allows goods imported into one member state to circulate tax-free if declared as destined for another. Criminal groups are allegedly using fictitious recipients to evade billions in VAT, flooding European markets with underpriced Chinese goods. Investigators have linked incidents in Prato to similar attacks in Paris and Madrid, indicating a transnational reach.
Beyond the financial implications, the conflict is exacerbating existing labor exploitation issues within Prato’s vast apparel industry. The sector, comprised of approximately 5,000 small-scale, predominantly Chinese-run workshops, has long faced scrutiny for unsafe working conditions, tax evasion, and illegal labor practices. Prosecutors say the Chinese mafia in Prato “promotes the illegal immigration of workers of various nationalities,”
supporting its demand for cheap labor.
Workers, including Chinese, Pakistani, Bangladeshi, and North African nationals, are reportedly earning as little as €3 per hour, working up to 13 hours a day, seven days a week. While over ninety workers have reportedly broken the silence and denounced exploitation, protection for whistleblowers remains minimal.
The situation has prompted Prosecutor Tescaroli to request intervention from Rome, including the deployment of an anti-mafia division and additional resources for law enforcement and judicial offices. He has warned that the conflict has become a significant criminal enterprise with reach into France and Spain.
However, a key obstacle to fully investigating and prosecuting these crimes lies in the lack of cooperation from Chinese authorities. A recent report by Bitter Winter highlights suspicions of a deliberate strategy by Beijing to weaponize criminal elements for its own purposes. The report suggests that the Chinese government not only tolerates these groups but actively instrumentalizes them to exert economic leverage, channel illicit profits, and extend its influence within Europe.
This alleged complicity stems from Beijing’s refusal to cooperate with European prosecutors, hindering investigations and allowing criminal networks to operate with relative impunity. The report frames the Prato case not as a solely Italian issue, but as a manifestation of a broader Chinese strategy.
The complexities of the case are further underscored by a recent development: a trial of Chinese crime gangs in Prato has been stalled due to fears of sabotage. , Reuters reported that the trial was facing delays, though details regarding the nature of the sabotage concerns were not immediately available.
Italy’s relationship with China has been undergoing a recalibration in recent years. While Italy was the only G7 nation to join China’s Belt and Road Initiative in , the current government, under Giorgia Meloni, has signaled a shift towards aligning with the EU’s “de-risking” strategy. This was exemplified by a decree in excluding Chinese solar panels and components from renewable energy incentives, a move aimed at reducing technological dependence on Beijing.
The visit of Chinese Foreign Minister Wang Yi in focused on implementing a 2024-2027 action plan for strengthening the comprehensive strategic partnership between Italy and China. However, the ongoing issues in Prato, and the broader concerns about Chinese organized crime in Europe, cast a shadow over these diplomatic efforts.
The situation in Prato highlights the challenges European nations face in balancing economic ties with China against concerns about security, rule of law, and the protection of vulnerable workers. The lack of transparency and cooperation from Beijing further complicates matters, raising questions about the true extent of its involvement – whether through active support or deliberate inaction – in the activities of these criminal networks.
The case also underscores the need for greater international cooperation to combat transnational crime and address the underlying factors that contribute to labor exploitation and illicit financial flows. As Italian authorities grapple with the escalating violence in Prato, the broader implications for Europe’s economic and security landscape remain a significant concern.