When an Italian tire giant that masters the world’s cutting-edge smart tire technology abandons its long-term agreement with its largest shareholder and rushes to the United States to build production capacity, what is behind it is no longer a simple business site selection, but a difficult compromise that multinational companies have to make under the game of great powers.
Pirelli’s strategic adjustment from a deep hand in China to a full shift to the United States has not only rewritten its own global layout, but has also become a true reflection of the current international economic, trade and technological competition.
On May 6, 2026, Pirelli officially announced that it will launch its core technology product, Cyber, at its factory in Rome, Georgia, USA.
The localized production of Tire intelligent connected tires will strengthen the integrated industrial and technological layout in the US market.
Only one month before this decision was made, the Italian government had just passed the “Golden Powers” bill, which significantly restricted the voice of its largest shareholder Sinochem Group on the board of directors. On May 18 of the same year, the expired shareholders agreement between Pirelli and Sinochem Group made it clear that it would not be renewed, and the cooperative relationship between the two parties officially came to an end.
A series of intensive actions have been implemented, making this production in the United States full of imprints of non-market factors.
The cooperation between Pirelli and Sinochem began in 2015. At that time, Sinochem invested heavily to become its largest shareholder, holding 34.1% of the shares, injecting funds into Pirelli and opening up the Asian market. Both parties have made steady progress in the fields of high-end tires and intelligent technology.
Sinochem relies on its huge resources to help Pirelli expand its channels in China. Cyber Tire technology will also enter the Chinese market in 2025 and be tested by local car companies, forming a mutually beneficial and win-win situation.
Changes will begin to appear in 2023.
Italy has repeatedly used its “golden power” to intervene in Pirelli affairs on the grounds of protecting strategic technology.
In April 2026, the Italian government further tightened restrictions: Sinochem can nominate directors on the board of directors from 8 to 3, and they are not allowed to hold core management positions. The restrictions will remain in effect as long as the shareholding exceeds 9.99%.
There is a serious mismatch between shareholding and voice, and Sinochem has been reduced from the largest shareholder to a marginal role.
Almost at the same time, the shareholders’ agreement between Pirelli and Sinochem expired and it was clarified that it would not be renewed, and the cooperation between the two parties officially came to an end.
The Chinese Ministry of Foreign Affairs has responded: Sino-Italian investment cooperation is mutually beneficial and should not be interfered by third parties. It supports Chinese companies in safeguarding their legitimate rights and interests. Sinochem also stated that it reserves the right to take legal action.
The Cyber Tire that was put into production in the United States this time is Pirelli’s core technology.
It is different from ordinary tire pressure monitoring. It collects tire pressure, temperature, road condition and other data in real time through built-in sensors, and cooperates with the vehicle’s ABS and stability control systems to improve driving safety and driving performance. It has been installed in high-end models such as McLaren and Pagani, and is one of the key technologies for smart travel.
Pirelli’s decision to go into production in the United States stems from real market and cost pressures.
As its core market, the United States contributes more than 20% of global revenue.
Starting in 2025, the United States will impose tariffs of up to 25% on European tires, significantly increasing their import costs.
The production capacity of its domestic factories in the United States is extremely low, and can only meet 5% of local demand. Its high reliance on imports has put pressure on the supply chain.
Moreover, the US has imposed restrictions on Internet technology with Chinese investment background on the grounds of data security. If Pirelli wants to retain the US market, it must send a “credible” signal to the US.
In order to stabilize the US market and alleviate the impact of tariffs, localized production of high-end smart tires has become an inevitable choice.
For Pirelli, going into production in the United States can alleviate tariff pressure in the short term, gain access to the U.S. market, consolidate the image of high-end technology, use local production to get closer to North American car companies, and promote the implementation of Cyber Tire supporting equipment.
But in the long run, the company is forced to divest itself of its original shareholder cooperation logic, its technological layout is hijacked by geographical factors, and its autonomy in business decision-making decreases.
At the same time, the breakdown of cooperation with Sinochem may affect this important market in China and lose the support for industrial synergy and expansion in China.
This incident shows that the business logic under globalization is being reshaped by geopolitics.
Pirelli’s turn is not a simple market choice, but a compromise under the pressure of technology, market and politics.
The interference in Sinochem’s legitimate rights and interests as an investor has also sounded a warning to Chinese companies’ overseas investments: even if they are deeply involved in compliance, they may face multi-dimensional scrutiny on governance rights, technology participation rights, etc.
For the industry, Pirelli’s experience is a microcosm: high-end technology is no longer just a corporate competitiveness, but has become a bargaining chip in geopolitical games.
In the future, multinational companies will need to find a more delicate balance between market, technology, and political risks. It is becoming increasingly difficult to operate purely on product and market orientation.
