China and Italy have just signed a three-year economic cooperation deal. The two nations already have a strong trade relationship. Daniel Lacalle, chief economist at Tressis hedge fund, says the move may be more messaging than action. He says Italy could be separating itself from the European Union’s stance when it comes to electric vehicles and trade. Mr. Lacalle also noted that the automotive industry and green technology industry are very significant to Italy and could be hard arenas for Italy to compete with China in.