Pirelli may lose the US market due to Chinese connections
Pirelli’s Cyber Tire technology could face a ban in the US. The reason is that 37% of the company’s shares are owned by China’s Sinochem. This becomes a problem amid new US regulations targeting Chinese software and equipment.
The US Department of Commerce recently banned the import of “hardware and software for connected vehicles” from China and Russia. The agency stated that these are “decisive actions to protect national security.” Now, high-tech tires with sensors are under threat.
How Cyber Tire technology works
Cyber Tires, introduced in 2021, contain sensors that collect data about:
Data from the sensors is processed by Pirelli’s specialized software, which is integrated into the vehicle’s electronics
This information is used to calibrate driver warning systems and is displayed on screens inside the cabin. Although the technology enhances safety, its future in the US is uncertain due to Chinese ownership in Pirelli.
Software restrictions will take effect starting with the 2027 model year, while hardware restrictions will begin in 2030. Automakers may try to obtain an exemption to use Cyber Tires, but the situation remains unclear. A telling example of how geopolitics influences technological development on a global scale. Companies must balance innovation with political constraints, which is particularly relevant for industries with intertwined international interests.