CDP Reti, a vehicle controlled by the Italian state, holds significant stakes in grid operators Terna, Snam, and Italgas. Since 2014, China’s State Grid has maintained a 35% stake in this entity. With a representative currently occupying seats on the boards of all three major utility companies, Beijing gains visibility into the strategic decision-making of Italy’s energy sector.

Concerns regarding this arrangement intensified last year when Germany’s economy ministry blocked Snam from acquiring a stake in a major German gas transmission firm. Berlin’s opposition was rooted specifically in the presence of the Chinese state-owned group as an indirect investor. While the Italian government has expressed unease over such vulnerabilities, the renewal of the current pact falls outside the scope of Italy’s "golden power" legislation, which typically allows the state to shield strategic assets from foreign control. Sources familiar with the matter maintain that the existing agreement restricts State Grid’s scope of action, effectively safeguarding Italy’s national interests.