The Italian tyre manufacturer Pirelli announced through its official statements that it does not plan any U.S. investment moves despite an Italian newspaper publication about potential investments. A denial was issued by Pirelli just before Prime Minister Giorgia Meloni prepares for her White House appointment on April 17th.

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According to Corriere della Sera Italian newspaper Paolo Zampolli expressed hopes that Prime Minister Giorgia Meloni would reveal substantial Pirelli investments during the upcoming visit. The report indicated that Georgia could receive a USD 1 billion investment for "smart tyres" manufacturing although the company planned to expand to USD 2 billion in the future.

A Pirelli spokesman released official statements to clarify their stance about upcoming investments. The company emphasized that no decisions have been made because of regulatory challenges pertaining to governance structure and shareholder management.

Also Read | Pirelli targets high-end forecast for full-year EBIT margin

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During this week Pirelli's executive vice chairman Marco Tronchetti Provera notified investors about the company's present challenges with U.S. investments. The company faces difficulties in U.S. investment because its main shareholder Sinochem functions under Chinese state control.

Pirelli's group governance becomes more challenging because both the Italian and Chinese shareholders maintain different perspectives on how it should be structured. The increasing U.S. supervisory attention to Chinese technology applications in the automotive industry has resulted in Washington issuing restrictions against software and hardware controlled by Chinese owners.

Previously President Trump applied a 25% import tariff on automobiles which he designed to drive international car makers along with their suppliers toward U.S. factory development to avoid the duties. The current position from Pirelli indicates federal regulations about Chinese control have become more important for U.S. market entry than investing in American operations.