A new report, Gli investimenti cinesi in Italia, prepared by the Institute for International Political Studies (ISPI) for Italy’s Osservatorio di Politica Internazionale — the analytical body supporting the Senate of the Republic, the Chamber of Deputies and the Ministry of Foreign Affairs and International Cooperation — argues that Chinese investment in Italy is entering a more pragmatic phase. Large-scale acquisitions have become rare, while economic security concerns increasingly shape investment decisions alongside industrial policy.
Chinese investment in Italy has fallen sharply from its mid-2010s peak as Beijing reins in outbound capital and Europe tightens scrutiny of foreign investment. But Rome is not closing the door. Instead, it is seeking to channel Chinese capital toward sectors that support industrial competitiveness while protecting strategic assets.
Why it matters: Italy has moved from being the only G7 country to join China’s Belt and Road Initiative to aligning with the EU’s de-risking strategy.
- Chinese investment in Europe is recovering, but through different channels than a decade ago.
- Italy has so far captured only a limited share of the new wave of Chinese industrial investment in clean technologies.
- Rome’s challenge is balancing economic security with the need to attract capital that strengthens the country’s industrial base.
Zoom out: China’s investment playbook has changed. China’s outbound investment strategy has undergone a profound transformation over the past two decades.
- After a gradual expansion in the early 2000s, overseas investment accelerated following the 2008 global financial crisis and surged after the launch of the Belt and Road Initiative in 2013, peaking at more than $200 billion globally in 2017. Beijing then tightened controls on outbound capital, while the pandemic further depressed investment flows abroad. More recently, outbound investment has begun to recover, although at a more moderate pace than during the previous boom.
- Europe has experienced a similar shift. The first wave of Chinese investment was dominated by acquisitions aimed at securing technology, industrial know-how, established brands and strategic infrastructure. Today, investment is increasingly taking the form of greenfield manufacturing projects, particularly in electric vehicles, batteries and clean technologies, as Chinese companies seek to produce inside the EU market while adapting to a more fragmented geopolitical and trade environment. Hungary has emerged as the main beneficiary, with Spain, Germany and France also attracting major projects along the EV supply chain.
The big picture: Italy’s relationship with China has been reset. Italy’s evolving approach to Chinese investment reflects a broader recalibration of its relationship with Beijing.
- In 2019, Rome became the only G7 country to join the Belt and Road Initiative, a decision that distinguished Italy from its Western allies. But by 2024 the Meloni government had opted not to renew the memorandum, while preserving the broader Italy-China Strategic Partnership and maintaining high-level political dialogue. The shift brought Italy closer to the EU’s position, which increasingly frames China as simultaneously a partner, an economic competitor and a systemic rival.
- The ISPI’s report – co-authored by Filippo Fasulo, Paola Morselli and Michele Danesi – argues that Rome’s objective is no longer to maximise Chinese investment at any cost, but to combine continued economic engagement with stronger safeguards for sectors deemed critical to national and European economic security.
Italy by the numbers. Chinese investment in Italy broadly mirrors European trends, but on a smaller scale.
- The high point came in 2015, when ChemChina acquired a controlling stake in Pirelli in a €7.1 billion transaction that remains the largest Chinese investment ever made in Italy. Since then, inflows have declined steadily.
- Following the post-pandemic slowdown, Chinese FDI amounted to roughly €163 million in 2025, while Italy failed to attract the wave of Chinese investment in electric vehicles and battery manufacturing that benefited countries such as Hungary, Spain and Germany.
Zoom in: Where Chinese money is still flowing. Despite the sharp decline in overall investment, Chinese capital remains concentrated in a limited number of strategic sectors.
- Machinery accounted for the largest share of Chinese investment in Italy in 2025, followed by energy, real estate and hospitality, consumer goods and services, and transport and infrastructure. According to the report, these sectors reflect China’s continued interest in Italy’s advanced manufacturing capabilities, engineering expertise and premium brands.
- Energy also stands out as a potential area for future cooperation. Italy’s transition toward renewables, electricity storage and advanced energy technologies offers opportunities for investment, although several announced projects in solar panels, batteries and wind power have yet to translate into fully operational industrial facilities. The report suggests that Italy may have stronger prospects in battery recycling, second-life storage and specialised manufacturing than in competing directly for large battery gigafactories.
- Meanwhile, consumer brands continue to attract Chinese interest. Recent transactions and prospective deals involving companies such as Bialetti and Golden Goose indicate that high-end manufacturing, design and lifestyle assets remain among Italy’s most attractive sectors for Chinese investors.
The gatekeeper: Golden Power. Italy’s Golden Power regime has become one of the defining features of the country’s approach to Chinese investment.
- Since the introduction of the EU’s foreign investment screening framework in 2019, the number of transactions reviewed by the Italian government has increased significantly. Rather than systematically blocking deals, Rome has often approved investments subject to strict conditions governing ownership, corporate governance and the management of strategic technologies. Particular scrutiny has focused on sectors such as telecommunications, advanced manufacturing, infrastructure and agri-food.
- The report presents Golden Power as a tool that allows Italy to balance openness to foreign capital with growing concerns over economic security.
What we’re watching: The report argues that Europe’s cautious reopening to Chinese investment presents Italy with a strategic dilemma.
- Rome will seek to preserve its economic security while remaining open to investment that supports industrial competitiveness, particularly in the energy transition and other advanced technologies. Whether Italy can attract a larger share of China’s new generation of industrial investment without relaxing its strategic safeguards will be one of the defining questions in the years ahead.
The bottom line: Chinese investment in Italy is no longer defined by the political symbolism of the Belt and Road Initiative or by blockbuster acquisitions. According to the ISPI report, the relationship is entering a more selective phase, in which economic security, industrial policy and targeted cooperation increasingly shape Rome’s approach to Chinese capital.