By Micah Jonah
January 7, 2026
Italy is considering fresh measures to limit the influence of China’s state owned group Sinochem over tyre maker Pirelli, including the possible freezing of its voting rights, as Rome seeks to support the company’s expansion in the United States, sources familiar with the matter said.
Sinochem holds a 34 percent stake in Pirelli, making it the company’s largest shareholder. Italian authorities are now weighing whether to use special state powers, known as golden power, to reduce Sinochem’s role to that of a passive shareholder, while allowing it to retain its economic interest.
The move comes amid growing concern that Chinese ownership could complicate Pirelli’s operations in the United States, as Washington tightens restrictions on the use of Chinese technology in the automotive sector.
Italy has already intervened in a governance dispute between Sinochem and Camfin, Pirelli’s second largest shareholder, using its strategic asset protection powers to safeguard the company’s interests.
Pirelli and Camfin have both argued that having a Chinese company as the main shareholder could hinder Pirelli’s growth plans in the U.S. market, particularly as new American regulations are expected to come into force from March.
While a sale of Sinochem’s stake remains one of the options under consideration, Italy is also examining ways to limit Sinochem’s influence without forcing an outright divestment, the sources said.
A passive shareholder typically maintains financial rights but has no voting power or ability to influence strategic decisions.
Sources previously said Sinochem was open to considering bids for its stake, provided they came at a premium. The Chinese group has since appointed BNP Paribas as adviser on a possible sale, according to one of the sources.
Italy’s Industry Minister, Adolfo Urso has expressed confidence that shareholders, with government support, will find a solution that allows Pirelli to operate effectively in key markets, particularly the United States.
Pressure to resolve the issue is increasing, with a shareholder agreement between Camfin and Sinochem set to expire in May, alongside looming U.S. rules that will further restrict Chinese technology in vehicles sold in the country.
The Financial Times earlier reported that Italy and Pirelli were exploring new ways to end Chinese state owned involvement in the company.
Pirelli declined to comment, while Italy’s economy and industry ministries did not immediately respond to requests for comments.
