FX.co ★ Italy Weighs Curbs on Chinese Stakes in Strategic Firms

Italy is contemplating initiatives to limit Chinese investments in key companies due to national security concerns and to strengthen its relationship with the United States, according to Bloomberg News. This strategy applies to both private enterprises and state-controlled entities, with special attention from Reuters on tire manufacturer Pirelli, where China's Sinochem International holds a 37% share. The Italian government is investigating methods to encourage Sinochem to divest, due to fears that its involvement could impede Pirelli’s access to U.S. markets owing to connections with Chinese technology. Additional concerns are directed towards the energy sector: the State Grid Corporation of China possesses 35% of CDP Reti, a major controller of Italy's energy networks, and despite a reduction in shares by Shanghai Electric, Chinese influence persists in the power-equipment producer Ansaldo Energia.