Italy May Invoke GoldenPower Rule to Shield Auto&Steel from China
Bloomberg reported that Italy is considering extending state protection against foreign ownership to the automotive and steel sectors, in a bid to shield
Bloomberg reported that Italy is considering extending state protection against foreign ownership to the automotive and steel sectors, in a bid to shield businesses from Chinese interest. Anti-migrant League party Italy’s Economic Development Minister Mr Giancarlo Giorgetti told lawmakers in Rome that “Some areas like the automotive and steel sectors are particularly in need of supportive measures because of their strategic character, and being particularly exposed to such competition. In this regard, we are assessing the possibility of extending the remit of the Golden Power rule to sectors which are currently excluded, and which have clear significance in the national economic framework.”
Golden Power involves state measures to block or manage foreign ownership in businesses deemed strategic.
He added “Unfair competition by China, with strong state subsidies normally unavailable to Italian and European companies, has been underestimated. The result was many job losses and company closures in Europe.”