The U.S. government has once again issued a new warning regarding Chinese state-owned enterprises’ control over the high-end tire manufacturer Pirelli in Italy, stating that the current structure of the company is not sufficient to meet the level of comfort for the United States.
According to Bloomberg, on Tuesday, September 9th, sources familiar with the matter stated that the U.S. has increased pressure on Italy over the Pirelli tire company issue and warned that having a Chinese state-owned enterprise as the main investor in this tire manufacturer may conflict with U.S. connected car regulations.
The sources revealed that the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) sent a letter to Italian officials in mid-July, pointing out that Italy’s veto power over Pirelli in 2023 to curb the influence of China National Chemical Corporation (ChemChina) was not sufficient to protect the company from U.S. restrictions.
Due to the nature of the communication being confidential, the sources requested anonymity.
It was mentioned that this letter was sent in response to Italy’s request for the U.S. to clarify its position regarding ChemChina’s involvement in Pirelli’s business. One of the sources indicated that representatives from ChemChina are expected to meet with Italian officials in the coming days to discuss the Pirelli issue.
As a global high-end tire manufacturer, Pirelli’s business includes supplying tires to luxury car brands such as Ferrari, Lamborghini, and providing F1 racing tires. Approximately one-fourth of Pirelli’s sales come from the United States.
The Italian government, Pirelli, and ChemChina all declined to comment. The U.S. BIS has not responded to requests for comment.
The report indicated that this new letter shows a hardening of the U.S. stance, with the BIS now engaging directly with the Italian government, highlighting the escalating geopolitical risks.
In May, Bloomberg reported that BIS had privately warned Pirelli that car manufacturers using vehicles equipped with its advanced sensor tires may need specific authorization to sell these cars in the U.S.
The recent tensions have raised questions about Pirelli’s ability to develop in the U.S., especially when its shareholder structure has not been more clearly resolved.
Pirelli has had governance disputes with ChemChina, a state-owned chemical and fertilizer conglomerate, which acquired a stake in Pirelli through a merger with China National Chemical Corporation in 2017.
Pirelli CEO Andrea Casaluci, in an earlier interview with Corriere della Sera, mentioned that without reaching a reconciliation with ChemChina, the development of key technologies and expansion in the U.S. could face “significant risks.” ChemChina has stated that they have no intention to sell the relevant shares.
In 2024, the Italian government amended the articles of association of the tire manufacturer, weakening ChemChina’s formal powers. Although this amendment was aimed at curbing Beijing’s influence on this strategic industrial asset in Italy, the latest letter from BIS in July indicates that the U.S. believes Italy’s protective measures are insufficient.
Previously, the Italian government initiated an investigation into ChemChina’s control over Pirelli using the “Golden Power” law, with a decision expected by the end of September 2025. The Italian government believes that Pirelli’s production of smart tire technology can collect data of national strategic significance, such as geographical locations and infrastructure statuses, and is concerned about the improper use of such data posing risks to national security.
There is a significant demand for smart tires in the U.S. Pirelli operates a smaller factory in Georgia, but its main products are still supplied to the U.S. market through factories in Mexico, South America, and Europe.
At a board meeting in March this year, Pirelli management officially requested ChemChina to reduce its current 37% stake to a level lower than what Italian shareholder Camfin holds at 26.4%.
On April 28th, the Pirelli board announced that the largest shareholder, ChemChina, a Chinese state-owned enterprise, no longer has control over Pirelli, and discussions among shareholders on the company’s governance and arrangements will continue.