Italy's PM Draghi vetoes technology transfer to China

Italy's prime minister, Mario Draghi, has vetoed a transfer of technology and software to China in a deal involving industrial robot maker EFORT Intelligent Equipment

The rebuffed group earlier this year announced a deal to raise its stake to 49% from 40% in Italian firm ROBOX..

which designs and manufactures electronic components for robotics and motion control systems.

In addition to the increased ownership stake worth 2 million euros ($2.14 million), the deal envisaged that ROBOX would authorize EFORT to use some of its source codes

However, Draghi's government has prevented ROBOX from agreeing to the technology transfer to China

The filing made reference only to the government veto, without specifying what part of the deal was rejected.

Italy reserves the right to use its anti-takeover legislation, to ward off undesired bids in industries deemed of strategic importance such as banking, energy, telecoms and health.

With the addition of the ROBOX case, Rome has stopped foreign interests in Italy seven times since the introduction of the golden powers in 2012.

Six of these episodes beat away Chinese bids and five have been under Draghi's government.