【Epoch Times January 24, 2026 News】Italian tire giant Pirelli’s ownership structure is undergoing a historic change. The company’s second-largest shareholder, Camfin, officially announced on Friday (January 23) that it will no longer renew its shareholder agreement with China National Chemical Corporation (Sinochem).
This decision marks a significant shift for the over 150-year-old Italian brand as it accelerates its move away from Chinese investment to navigate the increasingly stringent regulatory environment in the United States.
The cooperation between Sinochem (formerly China National Chemical Corporation) and Pirelli dates back to 2015 when Sinochem acquired a controlling stake in Pirelli for around $7.7 billion, seen as a landmark case of Chinese enterprises entering the European high-end manufacturing industry. However, geopolitics risks have now replaced the synergy of their partnership as they mark a decade of collaboration.
According to reports from the Financial Times and Bloomberg, the fundamental driver behind this “uncoupling” stems from the U.S. government’s tough policy on “critical supply chain security.” Pirelli is currently heavily promoting its Cyber Tire technology equipped with sensors that can transmit real-time driving data.
Yet, the U.S. Department of Commerce has formally established regulations that strictly prohibit the use of key hardware and software developed by Chinese entities on networked vehicles on U.S. roads. Certain core provisions of this ban will come into effect in March 2026.
With Sinochem holding a 34.1% stake in Pirelli, making it the largest shareholder, Pirelli is seen by the U.S. as having a “Chinese background.” Without adjusting its governance structure, Cyber Tire could be barred from entering the U.S. market, posing a threat to Pirelli’s revenue of up to 25% in the North American region and its future technological leadership.
The initiator of this divestment action is Pirelli’s second-largest shareholder, Camfin. Controlled by Marco Tronchetti Provera, vice-chairman of Pirelli, Camfin represents the Italian domestic entity of the brand. While Sinochem holds a 34.1% stake as the largest shareholder, Camfin is at the core of the decision-making power.
In a statement, Camfin bluntly stated, “We cannot reach an agreement with Sinochem to align the company’s governance structure with U.S. regulatory requirements.”
Reuters pointed out that the government of Italian Prime Minister Giorgia Meloni has been actively involved in this case. To protect this technology considered a “national strategic asset,” the government has repeatedly utilized the Golden Power to limit Sinochem’s influence, including stripping it of the authority to appoint the company’s CEO and repositioning it as a passive shareholder without decision-making power, only retaining dividend rights without participating in any operational, strategic, or technical decisions.
As the shareholder agreement is set to expire at the end of May this year with no renewal, Sinochem’s seats on Pirelli’s board are expected to be reduced. Rumors suggest that Sinochem has hired BNP Paribas of France as an advisor to assess the possibility of reducing its shareholding to below 10% or even exiting entirely.
This event, akin to LVMH scaling down its Chinese operations and GM withdrawing production lines, presents a similar logic: amid the global geopolitical polarization, multinational giants are forced to choose sides between “Chinese cooperation” and “Western markets.”
For Pirelli, choosing Camfin over Sinochem is the only path to preserving its high-profit U.S. market. It also sends a clear signal that the era of Chinese involvement in the global high-tech supply chain of top brands is entering twilight.