Meloni Struggles to Balance Italy's Relations with Washington and Beijing Amid U.S.-China Trade War (Anadolu Agency)

Bloomberg revealed that the government led by Italian Prime Minister Giorgia Meloni is considering a strict plan to limit Chinese investors' stakes in the most strategically significant companies in Italy, once again indicating that geopolitical divisions are deepening and putting pressure on global trade. The move aims to avoid further escalation of tensions with the United States at a time when Italy's exports are facing increasing pressure due to high U.S. tariffs and a rising euro.

These measures come against the backdrop of Europe's fragile economy, as governments attempt to reshape their trade relations with China to serve their security and economic interests, while closely coordinating with the policies of U.S. President Donald Trump aimed at economically isolating Beijing.

Targeting Strategic Enterprises

According to Bloomberg, the proposed measures cover private and state-owned enterprises critical to Italy's economic security, including tire manufacturer Pirelli, which is owned by a 37% stake by the Chinese State-Owned Enterprise Sinochem Group.

Pirelli becomes a focal point of dispute between Rome, Beijing, and Washington (Reuters)

According to sources, Chinese diplomats warned that if a friendly agreement cannot be reached on the Pirelli issue, the trade relationship between Rome and Beijing may suffer damage.

According to Bloomberg, Washington also warned the company that its tires equipped with electronic sensors might face restrictions in the U.S. market due to the increasing strictness of U.S. restrictions on hardware and software of Chinese-controlled companies, citing the risk of "data collection."

U.S. Pressure and European Selectivity

Bloomberg explained that these measures reflect Europe's attempt to find a balance between maintaining economic relations with Beijing and complying with White House directives. This is particularly evident as Europeans try to attract Chinese investment in "green growth" sectors such as electric vehicle battery industries, while excluding them from important infrastructure such as ports and power grids.

The list of Chinese investors targeted by the Italian government also includes CDP Reti, which holds controlling shares in Italy's power grid, with 35% of its shares held by a subsidiary of China's State Grid Corporation; additionally, there is Ansaldo Energia, a power plant producer. According to Bloomberg, Shanghai Electric has reduced its stake from 40% to 0.5%, but simply because of the existence of this Chinese shareholder, the company is unable to participate in some U.S. bids.

Numbers Reflect the Intensity of the Trade War

Data from Bloomberg show that approximately 700 Italian companies have Chinese shareholders, but the government's focus is on major entities in energy, transportation, technology, and financial sectors.

The trade war increasingly becomes a tool for the U.S. to pressure allies and reshape their economic relationships with China (Shutterstock)

In this context, Bloomberg reported that data from the U.S. Treasury showed that U.S. tariff revenue hit a record high in July, reaching about $28 billion, a 273% increase year-on-year. This indicates that the scope of the trade war is expanding and directly affecting supply chains and cross-border investments.

Bloomberg commented that these data reflect a more fragmented and tense global economic environment, with tariffs evolving from a negotiation tool into a far-reaching economic weapon.

Sources: Bloomberg

Original: https://www.toutiao.com/article/7540090260139622975/

Statement: The article represents the views of the author. Please express your opinion by clicking on the 【Like/Dislike】 button below.