Market Chatter: Pirelli, Sinochem Revive Negotiations Amid Looming US Ban for Chinese-backed Products

01:43 AM EST, 01/06/2026 (MT Newswires) -- Pirelli (PIRC.MI) and its largest shareholder, Sinochem, are back at the negotiating table with the help of the Italian government in preparation for a US ban on Chinese-backed hardware and software that interact with US cars. The Italian government and the tire manufacturer are scrambling to ensure the company is not banned in the US because of the Chinese shareholders' involvement, London's Financial Times reported Tuesday, citing people familiar with the discussions. The ban will take effect in March and the US accounts for a fifth of the company's revenue. The people said Sinochem appointed BNP Paribas in December 2025 to review sale options for its interest in Pirelli. It follows failed attempts to reduce the Chinese company's control of the tiremaker. The report noted that the Italian government may again resort to using the "golden powers" legislation if the parties fail to reach an agreement by January 2026. Pirelli and Sinochem did not immediately respond to requests for comments from MT Newswires. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)