The Evolution of the Italian Approach to Chinese Foreign Investments: A Review of the Screening of Four Technology-Related Investments

Abstract

This article examines how Italy's approach to Chinese foreign investment, particularly in technology-related sec- tors, has evolved through the lens of its Golden Power framework. It traces the shift from an initially welcoming stance, driven by economic opportunities and the Belt and Road Initiative, to a more cautious and restrictive policy influenced by national security concerns, EU regulations and pressure from the United States. Four post- Covid-19 case studies (LPE, Verisem, Pirelli and Ferretti) are analysed to illustrate the expansion of the Golden Power regime in terms of its objectives, scope and procedures. The findings reveal a deliberate politicization of investment governance, with strategic and security considerations being given greater priority than economic incentives. The article concludes by discussing the implications of this recalibration for Italy's geo-economic strategy and the geopolitical consequences of the new investment screening mechanism.