Italian Pirelli is forcing its Chinese owner to reduce its shares due to fears that Trump will freeze stocks, according to FT.

Pirelli's board is pressuring its largest investor, Chinese Sinochem, to reduce its stake amid concerns that the hawkish stance of the Trump administration regarding Beijing's ownership of American assets will hinder the Italian tire manufacturer's expansion in the U.S. According to sources familiar with the plans, the Pirelli management will request in a board meeting on Wednesday that Sinochem immediately lower its 37% stake below the 26.4% held by Italian shareholder Camfin.

Sources indicate that one option proposed by Pirelli is for Sinochem to reduce its stake below 25% through a share buyback, with some shares to be immediately resold on the market. It remains unclear whether Sinochem, represented by Jiao Jian, who is also Pirelli's chairman, will accept this proposal. The parties reportedly failed to reach an agreement in preparatory discussions ahead of the board meeting. Washington is exerting pressure on Chinese technology in the automotive industry, banning significant software and hardware from companies under Chinese control in connected vehicles on U.S. roads.