Italy seeks to limit Chinese stake in Pirelli

The Italian government, Italian tire maker Pirelli, and its shareholders are looking for ways to end the involvement of Chinese state-owned company Sinochem in the Milan-based tire manufacturer, amid pressure from the United States, the Financial Times reported on Tuesday.

Sinochem is Pirelli’s largest shareholder, holding a 37% stake, and this could cause the Italian tire maker to lose access to the U.S. market, which accounts for one fifth of its revenues. Washington is concerned about Sinochem’s stake because the Italian group has developed technology that allows data collected by its Cyber Tyres to be transferred in real time to vehicles, CE Report quotes AGERPRES.

According to the Financial Times, citing sources close to the talks, authorities in Rome are considering a new intervention, as a U.S. ban on hardware and software developed by companies backed by Chinese firms and interacting with American vehicles is set to enter into force in March 2026.

In the U.S. market, Pirelli mainly sells its premium tires incorporating the latest technologies. In recent months, U.S. officials have pressured Rome to limit Sinochem’s influence over Pirelli, according to several sources familiar with the matter. The sources added that while Pirelli executives have tried to resolve the dispute by offering Sinochem several options, including selling its stake, the Chinese state group’s management did not respond immediately. However, Sinochem appointed French bank BNP Paribas last month as an adviser to explore sale options, the sources said.

If the parties fail to reach a compromise by the end of this month, the “last resort” would be for the Meloni government to suspend Sinochem’s voting rights at Pirelli, under special legislation that allows Rome to impose limits or veto foreign investments in strategic Italian assets.

Italian Industry Minister Adolfo Urso said on December 30 that the government had made efforts to bring the parties back to the negotiating table. “It is a positive element that the parties have resumed dialogue,” Urso said.

In 2015, Chinese state-backed ChemChina bought Pirelli and relisted the tire maker on the Milan stock exchange in 2017. In 2021, ChemChina received final approval to merge with Sinochem. Tensions between the Italian group and Sinochem erupted after the Chinese shareholder sought to strengthen its control over Pirelli following the merger.

Former Pirelli CEO Marco Tronchetti Provera, whose holding company Camfin is now the second-largest shareholder in the tire maker, raised alarms about Beijing’s interference in Pirelli’s management and governance. This led to direct intervention by Rome in 2023 under so-called “golden powers,” aimed at protecting strategically relevant information and know-how. These powers allowed authorities to limit information sharing between Pirelli and Sinochem and to require a four-fifths majority for certain “strategic” board decisions.

In April 2025, Pirelli’s board stripped Sinochem of its control over the tire maker, creating tensions between Chinese and Italian shareholders. Italy has nevertheless sought to avoid antagonizing the Chinese government and hopes to find an amicable solution to the dispute.

Pirelli entered Romania in 2004, when it established “Pirelli Tyres Romania.” Construction of the tire factory in Slatina began in 2005 as a greenfield project, and the first tires were produced in 2006.