Italy’s government stepped in to limit the influence of China’s Sinochem over Formula One supplier Pirelli SpA, citing concern about data collected by sensors in the company’s tires.

Prime Minister Giorgia Meloni’s cabinet used its “golden power” rights to impose restrictions on Sinochem’s access to information from the technology, deeming it strategically important, the government said in a statement Friday. Sinochem is Pirelli’s biggest investor.

The goal is to protect a technology that allows for advanced embedded sensors in tires that collect location and infrastructure data. The data could be used for industrial optimization and feed into artificial intelligence models, making it critical to national security, according to the statement.

Some strategic decisions will require an 80% majority in the board and Pirelli will be required to set up an independent unit to ensure the security of the technology and its data. A Pirelli spokesman declined to comment.

Pirelli is a test case for Meloni as she seeks to show resolve in distancing Italy’s economy from China at a time of increasing US-Chinese technological and economic rivalry.

Sinochem owns a 37% stake in Pirelli following a 2017 listing. Bloomberg News first reported in April about Italy’s plan to restrict Sinochem’s power over Pirelli.

Milan-based Pirelli has touted its system as the future of tires, saying the next step would be to connect them “to a network with other vehicles and the surrounding infrastructure”

Pirelli is one of Italy’s most prominent manufacturers, known for its focus on patents as more efficient tires become key components in the auto industry, especially for electric vehicles.

The company is a key supplier to super-car makers and a partner of Formula One racing. Pirelli in 2020 ranked third in Italian filings to the European Patent Office.

Italy’s intervention was triggered by the renewal of a shareholder pact between Sinochem and Camfin, the financial holding of Pirelli CEO Marco Tronchetti Provera. Camfin owned 14.1% of Pirelli.

The pact requires government approval in line with Italy’s enhanced ‘golden power’ rules.

--With assistance from Daniele Lepido.

(Updates with government’s explanation in third paragraph, Pirelli no-comment in fourth.)