Tensions Mount Over Pirelli's U.S. Expansion Amid Chinese Stake Controversy

The Italian government is actively seeking clarity from the U.S. as concerns grow over potential domestic restrictions on Italian tyremaker Pirelli due to its substantial Chinese investment, two sources revealed to Reuters.

This development follows the U.S.'s actions to limit the adoption of Chinese technologies in vehicles, raising questions about Pirelli's future in the market. China's Sinochem, owning a 37% stake in Pirelli, and Italian investor Camfin are embroiled in a governance battle over the company.

With Pirelli's U.S. revenue at stake, the Italian government is involved in discussions to determine the impact of proposed U.S. legislation, which could affect the company's expansion plans. Prime Minister Giorgia Meloni's office and Pirelli have yet to comment on the ongoing negotiations.

(With inputs from agencies.)