Decoding the news: The move would allow Pirelli to continue operating in the U.S. — one of its key markets — as Washington tightens restrictions on Chinese technology embedded in industrial products.
What’s happening: The Italian government is weighing the use of its golden power rules to freeze Sinochem’s voting rights in Pirelli.
- Sinochem owns 37% of the company but has progressively lost de facto control.
- The initiative is coordinated by Palazzo Chigi, in consultation with Pirelli’s management.
Why now: Starting March 2026, the U.S. will ban the use of Chinese-made hardware and software in connected industrial products, including automotive components.
- Around 20% of Pirelli’s revenues come from the U.S. market.
- Pirelli’s Cyber Tyre system — a core growth technology — risks falling under U.S. restrictions if Chinese ownership is deemed influential.
Behind the scenes: In April 2025, Pirelli’s board formally declared the end of Sinochem’s control under international accounting standards.
- In June, shareholders approved the company’s financial statements despite Sinochem voting against them.
- In September, the Bureau of Industry and Security (BIS, U.S. Commerce Department) warned Italian officials that Chinese state ownership could conflict with U.S. rules on connected vehicles.
- The BIS also argued that Italy’s existing golden power safeguards were insufficient to shield Pirelli from U.S. regulatory action.
The failed compromise. Pirelli sought a negotiated exit with Sinochem, which appointed BNP Paribas to explore sale options.
- No agreement has been reached so far.
- According to the Financial Times, Rome could move as early as January if talks collapse.
Who benefits: Italian shareholder Camfin (25.3%) could increase its stake to just under 30%, strengthening European control.
- Pirelli would gain regulatory clarity in the U.S. and preserve access to a strategic market.
What we’re watching: If Sinochem’s voting rights are frozen, a partial or full sale of its stake becomes more likely.
- The case could set a precedent for how European governments manage Chinese ownership in sensitive industries amid U.S.-China tech decoupling.
