US Warns Pirelli Sales Restrictions Over Chinese Investor

The U.S. government has warned Italian tyre maker Pirelli that sales of its Cyber Tyre technology, which collects and transmits real-time data from tyres to vehicles, could face restrictions due to the involvement of Chinese state-owned Sinochem, which holds a 37% stake in the company. This warning comes amid broader U.S. efforts to crack down on Chinese technology in the automotive sector, with prohibitions on related software taking effect in the 2027 model year and hardware restrictions by 2029 or 2030. Automakers incorporating Cyber Tyre sensors into their vehicles will likely need to apply for special authorization to sell such vehicles in the U.S., potentially complicating Pirelli's expansion efforts in the North American market. Pirelli and its other major investor, Camfin, have entered a governance dispute with Sinochem, arguing that Chinese control impedes business growth in the U.S. Despite Pirelli generating about a quarter of its revenue from North America, the company faces significant regulatory and operational challenges ahead. These developments highlight the increasing scrutiny of foreign technology investments in key U.S. industries and their impact on global supply chains.