After kill switches in solar panels, is China fitting data-collection technology on Pirelli tires, U.S. warns?

Clandestine war over AI or Artificial Intelligence and data between the USA and China seems to be escalating high-tech day by day. Now, apprehensions are being raised over China plausibly fitting data-collection technology on Pirelli tires, as per a report on Tuesday.

The Donald Trump administration has warned Pirelli that sales of vehicles fitted with its data-collecting technology could be restricted due to concerns over the influence on the tyremaker of its Chinese investor, Reuters reported quoting Bloomberg.

US vs China


The U.S. is cracking down on Chinese technology in the automotive industry, banning key software and hardware from Chinese-controlled companies in connected vehicles on U.S. roads. Software prohibitions take effect in the 2027 model year, those on hardware in 2029.

Chinese Investment in Pirelli Tyre

Italy's Pirelli, whose largest shareholder with a 37 per cent stake is Chinese state group Sinochem, has developed technology allowing data from its so-called Cyber Tyres to be collected and transferred in real time to the vehicle.

The informal advisory to Pirelli was outlined in a letter dated April 25 by the Commerce Department's Bureau of Industry and Security, Bloomberg said.

It added that the letter, sent in response to a request for an advisory opinion by Pirelli, said automakers that incorporate Cyber Tyre technology into their vehicles would likely need to apply for a specific authorization to sell them in the U.S.

Pirelli in USA

Pirelli and its second-largest investor Camfin, the vehicle of Italian businessman Marco Tronchetti Provera, have entered a dispute with Sinochem over the tyremaker's governance, claiming Sinochem's leading shareholding position was hindering the group's ability to expand its business in the U.S.

Pirelli makes around 25 per cent of its revenue in North America, which it mostly serves through plants in Mexico, South America and Europe, although it also runs a smaller facility in the U.S. state of Georgia.

Last week CEO Andrea Casaluci said in an interview with Italian daily Corriere della Sera that Pirelli was in a risky situation after Sinochem rejected a proposal by the company to solve its governance issues.

FAQs

Q1. What is full form of AI?
A1. The full form of AI is Artificial Intelligence.

Q2. What do we know about Chinese investment in Pirelli Tyre?
A2. Italy's Pirelli, whose largest shareholder with a 37 per cent stake is Chinese state group Sinochem.