Italy seeks to curb Chinese influence in strategic companies
&imwidth=600&imheight=450&format=webp&quality=medium "Italy seeks to curb Chinese influence in strategic companies")
Italian Prime Minister Giorgia Meloni and Polish Prime Minister Mateusz Morawiecki hold a joint press conference in Warsaw, Poland, July 5, 2023. Photograph: (Reuters)
The Italian government’s move highlights the delicate balancing act Italy faces in its relations with both the US and China. Washington has already raised concerns about Pirelli’s cyber sensors, fearing potential data risks, and warned that Chinese firms could face restrictions in the US.
Italy’s government, led by Prime Minister Giorgia Meloni, is considering new measures to limit Chinese ownership in key Italian companies, particularly those in strategic sectors such as energy, technology, and infrastructure. This move aims to protect national security and strengthen Italy’s geopolitical standing, especially in the face of growing tensions between the US and China. According to a report by Reuters, the government’s focus is on firms like tiremaker Pirelli, where China’s Sinochem International Corporation holds a 37 per cent stake. The government is exploring options that would pressure Sinochem to sell its stake, as the company’s involvement with Pirelli could hinder the firm’s access to US markets due to security concerns over Chinese-controlled technology.
Strategic sectors under scrutiny
The Italian government’s initiative is part of a broader effort to reassess foreign investments in critical industries. The presence of Chinese investors in strategic sectors, such as Italy’s energy grids and power plants, is causing concern. For example, the Chinese state-owned State Grid Corporation of China holds a 35 per cent stake in CDP Reti, which controls Italy’s energy grids, and Chinese influence in power plant maker Ansaldo Energia is still felt despite Shanghai Electric reducing its stake. Meloni's government has already invoked the “golden power” rule, a legal mechanism that enables the state to intervene in foreign investments in strategic sectors.
Geopolitical tensions and economic considerations
The move also highlights the delicate balancing act Italy faces in its relations with both the US and China. Washington has already raised concerns about Pirelli’s cyber sensors, fearing potential data risks, and warned that Chinese-controlled companies could face restrictions in the US market. However, any aggressive action against Chinese investments could strain Italy’s relationship with one of its largest trading partners, particularly after the country exited China’s Belt and Road Initiative in 2023. Despite this, Meloni’s government has been cautious, seeking to avoid upsetting China while simultaneously aligning with US interests.
This geopolitical shift underscores Europe’s growing wariness of Chinese influence, particularly in sectors that could affect national security. While the EU has welcomed Chinese investment in the past, it has become more selective, steering Chinese capital away from critical infrastructure and towards sectors like electric vehicles and renewable energy that align more closely with European economic priorities.
Trending Stories
)
)
)
)
&im=FitAndFill=(700,400))
&im=FitAndFill=(700,400))
)
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
)
)
)
(With inputs from agencies)