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Italy and Pirelli try to end Chinese involvement in tyremaker

Rome and Italian group look for a solution ahead of US ban on Chinese-backed car software and hardware

The Italian government, Pirelli and its shareholders are searching for ways to end Sinochem’s involvement in the Milan-based tyremaker, which could be banned from the US due to the Chinese chemical group’s shareholding.

Rome is mulling a fresh intervention as Washington’s ban on Chinese-backed hardware and software that interact with US cars comes into effect in March, according to people familiar with the discussions.

Sinochem is Pirelli’s largest shareholder with a 37 per cent stake, and the Italian tyremaker could lose access to the US, which accounts for a fifth of its revenues.

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