The French tyre manufacturer MICHELIN has signed a memorandum of understanding with China's main manufacturer SHANGHAI TYRE in view of setting up a joint-venture in Shanghai. This is MICHELIN's largest investment in China. According to the Chinese press, the creation of the joint-venture will be achieved for a total capital injection of $80 million. MICHELIN's share, set at 70%, thus means an investment of $56 million, amount not confirmed by the French firm.