Italy's government and Pirelli (PIRC IM) are searching for ways to end Sinochem's (600500 CH) involvement in the Milan-based tyre maker, which could be banned from the US due to Chinese chemical groups shareholding, according to FT

Italy's government and Pirelli (PIRC IM) are searching for ways to end Sinochem's (600500 CH) involvement in the Milan-based tyre maker, which could be banned from the US due to Chinese chemical groups shareholding, according to FT.

The ongoing discussions between Italy and Pirelli to sever ties with Sinochem are significant, as a potential ban from the US could affect Pirelli's market access and investor sentiment. Should this move materialize, it might influence the stock’s performance and could have broader implications for Chinese investments in Europe. Additionally, the geopolitical tensions surrounding China may lead to increased volatility in related sectors, particularly in capital goods and trading companies.