Italy Imposes New Restrictions on Sinochem to Resolve Pirelli Governance Dispute

Italy has imposed new restrictions on China’s Sinochem in an effort to resolve a governance dispute involving the tyre manufacturer Pirelli.

The measures, reported on April 10, 2026, are intended to settle a conflict regarding the composition and management of Pirelli’s board. The dispute involves Sinochem and Camfin.

Governance Dispute and Regulatory Action

The Italian government’s decision to introduce these curbs follows a period of tension over how the company is governed. The restrictions are specifically aimed at ending the governance spat between the Chinese investor and other stakeholders.

This development follows previous regulatory scrutiny. On September 29, 2025, Italy had ruled that Sinochem did not breach golden power rules, while the government continued to work with Pirelli and its shareholders to manage the role of the Chinese investor.

The current measures are linked to a Golden Power PMO decree, as indicated by reports from the Pirelli newsroom.

Operational and Geopolitical Pressures

Beyond the board-level disputes, Pirelli is facing operational challenges related to geopolitical pressures. The company’s board has reportedly resisted an imposed separation of cyber tyre operations.

This resistance comes as the company approaches a geopolitical deadline, placing the tyre maker at a critical juncture regarding its technical and operational structure.

Context of Chinese Investment

The ongoing friction highlights the complexities of foreign investment in strategic Italian industries. The use of Golden Power decrees allows the Italian government to exercise oversight and impose restrictions on investments that may affect national security or strategic interests.

In this instance, the government is utilizing these powers to mediate the relationship between Sinochem and Camfin to ensure the stability of Pirelli’s corporate governance.