Italy weighs moves to cut Chinese stakes in strategic firms
Italy weighs moves to cut Chinese stakes in strategic firms
Italy weighs moves to cut Chinese stakes in strategic firms | Caliber.Az
Tiremaker Pirelli & C. SpA, where China’s state-owned Sinochem International Corp. owns 37%, is a prominent example. U.S. authorities have warned that Pirelli’s tires equipped with cyber sensors could face restrictions, citing data security risks. Rome has already used its “golden power” rules to limit Sinochem’s influence, and in April, Pirelli’s board downgraded the investor’s governance role. Officials are now weighing steps that could pressure Sinochem to sell, the people said.
Other potential targets include CDP Reti SpA, which controls Italy’s power grids and is 35% owned by a unit of State Grid Corporation of China, and Ansaldo Energia SpA, where Shanghai Electric cut its stake from 40% to 0.5% but whose Chinese ties still block participation in some U.S. tenders.
About 700 Italian firms have Chinese investors, but the government’s focus is on large entities in energy, transport, technology, and finance. Rome’s moves reflect a broader European effort to “de-risk” from China while maintaining selective engagement, particularly in green industries.
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To start with, China bad.
However, if they are willing to inject money into European companies and their influence on those companies is kept in check meaning they are never allowed to solely control those companies, then I think that's fine. They make some money and EU companies get some investment that they hopefully use to be more competitive. Maybe there is information I don't know but sounds like how Pirelli is managing it is good. In the case of Pirelli, going further would just be placating the US which we need to stop doing all the time in my view.
This should not be allowed for all companies (military, IT security, other sensitive stuff...) and I think the unbalanced competitive landscape in China itself makes things unfair too. But it's not something the EU can practically change. We don't have many carrots/sticks we can use to stop dumping their products and stealing IP.