By John Phillips

ROME

Chinese firm ChemChina is to buy a controlling stake in the iconic Italian auto tire manufacturer Pirelli.

The $7.7bn deal has raised concern in Italy over foreign ownership of key companies, company officials said Monday.

 Under the deal, the Pirelli company headquarters, research centre and corporate leadership will remain Italian, officials said.

 Commentators such as Federico Rampini, who writes for la Repubblica newspaper, said the agreement was sure to upset the administration of U.S. President Barack Obama, who fought to protect U.S. security and technological superiority from the Chinese.

Afraid of Beijing’s shopping spree in Europe, Obama has claimed that the continent does not have a strategy to protect its know-how.

Professor Giuseppe Berta, from Milan's respected Bocconi university, also criticised the government of Italian Prime Minister Matteo Renzi for allowing the controversial deal to take place.

Berta told la Repubblica: "This is not about attracting foreign investors, but just selling off pieces of the country."