Italy’s government and tyremaker Pirelli are exploring options to end the involvement of Chinese state-owned group Sinochem in the Milan-based company, amid mounting pressure from the United States, the Financial Times reported on Tuesday.
Sinochem, Pirelli’s largest shareholder with a 34.1% stake, has been seen as a potential obstacle to the company’s expansion in the U.S., according to Pirelli’s Italian investor Camfin. Washington has been tightening restrictions on Chinese-linked technology in the automotive sector, complicating Pirelli’s growth plans, News.Az reports, citing Reuters.
The report said Rome is considering fresh intervention as new U.S. rules banning Chinese-backed hardware and software that interact with American vehicles are set to take effect in March. The discussions are said to involve people familiar with the matter.
In recent months, U.S. officials have urged Italy to curb Sinochem’s influence at Pirelli. The company has reportedly proposed several solutions to the Chinese shareholder, including a possible sale of its stake, though Sinochem has not actively engaged so far.
Reuters was unable to independently verify the report. Pirelli and the Italian government did not immediately respond to requests for comment.