UPDATE 1-Italy rules Pirelli's Chinese investor Sinochem did not breach 'golden power' rules

(Adds U.S. context in paragraphs 2-3, background in last paragraph) MILAN, Sept 29 (Reuters) – Italy's government has determined that Sinochem, the largest shareholder in Pirelli, did not violate "golden power" measures imposed in 2023, the tyre manufacturer said on Monday. Chinese involvement in the historic Italian company has been a sensitive issue in recent months , as Pirelli's second-largest shareholder, Camfin, argued that it threatens its ambitions to expand in the United States. Washington is tightening restrictions on Chinese technology in the automotive sector, banning key software and hardware from Chinese-controlled companies in connected vehicles operating on U.S. roads. Italy's government concluded that actions by non-independent directors appointed by Sinochem, which holds a 37% stake in Pirelli, did not compromise the company's management autonomy, a statement said. Italian authorities launched a probe last November to assess whether Sinochem's board presence violated rules designed to ensure Pirelli's operational independence from the Chinese investor. The government invoked its "golden power" two years ago to curb Sinochem's influence in Pirelli and to protect Pirelli's managerial autonomy, and has since faced more recent calls from Camfin's boss Marco Tronchetti Provera to take further restrictive measures. (Reporting by Cristina Carlevaro, editing by Alvise Armellini and Louise Heavens)

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