For many Italian companies, doing business in China and India has traditionally meant focusing on how to sell products and services in two of the world’s largest markets. Today, however, this perspective is no longer sufficient.
China and India have become key players in global value chains. Both countries are increasingly involved in manufacturing, design, innovation, and international investment. Italian companies are looking beyond potential customers to identify strategic partners, access specialized expertise, and leverage manufacturing and innovation capabilities. At the same time, Chinese and Indian companies are turning to Italy and Europe to invest, including through acquisitions, establish partnerships, enter new markets, and increasingly develop local manufacturing operations.
Although China and India differ significantly in their economic structures and business environments, both reflect a fundamental shift: internationalization is no longer a one-way process, nor is it simply about entering new markets.
From Exporting to Strategic Collaboration
China offers a clear example of this transformation. Its integration into global value chains has enabled Chinese companies to develop advanced capabilities in product design, technology, and business models, creating highly dynamic ecosystems in sectors such as electric vehicles, batteries, renewable energy, robotics, and artificial intelligence.
According to Xieshu Wang, Head of PRAXI’s China Desk, this evolution calls for a different approach from Italian companies. The question is no longer simply how to sell in China, but how to collaborate with Chinese businesses to compete in global markets.
Annual trade between Italy and China now exceeds €70 billion. However, Italian exports to China have declined from €19 billion to €14 billion over two years, while imports from China exceed €60 billion.
India is also evolving beyond its traditional role as a manufacturing hub, becoming an increasingly important center for talent development and specialized expertise, supported by international investment, digitalization, and infrastructure development.
Annual trade between Italy and India stands at approximately €14 billion, with an estimated 600–700 Italian companies operating in the country.
In January 2026, the European Union and India concluded negotiations on a free trade agreement designed to reduce tariffs on a broad range of products once it enters into force. This development complements Italy’s bilateral action plans with China for 2024–2027 and India for 2025–2029.
China and India should therefore be viewed not simply as target markets, but as strategic partners for developing joint initiatives and creating long-term value.
Market Entry Is Only the Beginning
For Italian companies considering expansion into India, the first challenge is defining an effective market entry strategy.
As Sai Subramanian, PRAXI’s India Desk representative, explains, key decisions include selecting the right partners, choosing where to establish operations, and determining the appropriate level of initial investment.
A gradual approach, potentially through a joint venture, is often the most effective. Establishing a local presence and ensuring direct engagement are essential to helping local teams understand and adopt the company’s products, standards, and operating practices.
In China, business dynamics differ, but understanding the local context is equally critical. Decision-making processes can vary considerably depending on whether a company is dealing with a privately owned SME, a large conglomerate, a listed company, or a state-owned enterprise.
Chinese and Indian companies expanding into Europe face similar challenges from a different perspective. Competitive pricing and strong technology alone are not enough to establish a successful market presence. Building credibility, trust, and lasting business relationships is equally important.
As Xieshu emphasizes, this is where a local partner can provide significant value: not simply by overcoming language barriers, but by “translating business contexts, expectations, and ways of working.”
Connecting Markets and Expertise
This is the role of PRAXI’s China Desk and India Desk. In-depth knowledge of their respective markets provides the foundation, but their value extends beyond market insight. Both Desks help companies identify the expertise, resources, and relationships needed to turn international business opportunities into concrete projects.
For an Italian company entering India, this may involve identifying professionals to lead business development, selecting a local partner, building a management team, or protecting trademarks and proprietary know-how.
Established in 2021, PRAXI’s China Desk follows the same approach, also supporting the growing number of Chinese companies investing and operating in Italy and Europe.
Its activities span a broad range of business needs, including industrial investments, regulatory compliance, investment incentives, partner identification, intellectual property, real estate, and talent management.
Alongside its project-based activities, the China Desk also promotes dialogue and knowledge sharing with organizations such as the Italy-China Foundation, addressing topics ranging from brand development to the application of artificial intelligence in manufacturing.
Building Relationships Before Business
Despite their different economic and cultural environments, Italy, China, and India share one essential characteristic: personal relationships play a central role in building successful business partnerships.
Sai summarizes the mindset required in three words: curiosity, patience, and authenticity. Xieshu highlights five equally important qualities: vision, trust, pragmatism, flexibility, and creativity.
Italian companies bring a strong tradition of quality, creativity, and problem-solving. These strengths can complement the scale and execution capabilities of Indian businesses and the rapid pace of innovation within Chinese companies.
The most valuable partnerships emerge when each party recognizes and builds on the strengths and capabilities of the other.
Approaching China and India as partners rather than simply as markets therefore requires a perspective that extends beyond immediate commercial opportunities.
As Sai and Xieshu emphasize from their respective experiences, lasting international business relationships are built over time, through trust, mutual understanding, and a shared willingness to learn from one another.
