US Issues New Warning Over Italian Tiremaker’s Chinese Owner (1)

The US has stepped up pressure on Italy over Pirelli & C. SpA, warning that the presence of a Chinese state-owned company as the tiremaker’s lead investor will likely conflict with American rules on connected vehicles, people familiar with the matter said.

In a letter to Italian officials in mid-July, the Commerce Department’s Bureau of Industry and Security said that the veto powers Rome imposed on Pirelli in 2023 to curb Sinochem Holdings Corp.’s influence weren’t sufficient to protect the company from restrictions in the US, the people said, asking not to be identified discussing non-public correspondence.

The ...