Pirelli is working to unwind its complicated ownership structure, a move driven by mounting geopolitical friction. The tyre maker’s largest shareholder, state-owned China National Chemical Corp, known as ChemChina, has been trying to offload its stake for years. This effort stalled after Sinochem, another Chinese state giant, absorbed ChemChina in 2021, creating a web of conflicting interests.

Complicating matters, Pirelli counts the United States as a major market, providing a fifth of its revenue. That deep exposure makes its Chinese state backing a growing liability. Western governments increasingly scrutinize such ties, fearing compromised technology transfer and supply chain vulnerabilities.

Pirelli’s leadership wants to clear this fog to protect its business in North America and Europe. The company now aims to reorganize its shareholding so Sinochem holds a non-controlling position. This would restore a semblance of independence and reassure international clients and regulators.

The outcome will be closely watched across the automotive sector, where data security and national allegiances are becoming deal-breakers. Pirelli’s success could set a precedent for other European firms caught in the crossfire of a new economic cold war.