Workers assemble cars at a car plant of SAIC-GM-Wuling in Qingdao city in east China’s Shandong province, Feb. 5, 2025.<\/p>\n
ZHANG JINGANG | Future Publishing | Getty Images<\/p>\n
DETROIT \u2014 General Motors<\/a> and China’s SAIC Motor have extended a decadeslong Chinese joint venture that was set to end next year, the U.S. automaker said Tuesday night.<\/p>\n The extension comes amid a rapidly changing automotive landscape<\/a> in China that has included the swift rise of domestic automakers and a shift away from traditional Western brands and legacy joint ventures.<\/p>\n GM declined to provide financial details of the extension, which comes amid heightened geopolitical tensions between the U.S. and China, including a potential stateside ban<\/a> of Chinese brands and vehicles. <\/p>\n The largest disclosed change in the dynamic of the agreement is its length. The initial deal established in 1997 was for 30 years, and now the companies have announced a 20-year extension of the 50-50 joint venture to 2047.<\/p>\n GM noted that the deal will focus on refocus domestic sales of Buick and Cadillac models in China in addition to exporting products, including Chevrolet models, built in China for non-U.S. markets.<\/p>\n “We are committed to strong performance in the China market, and we see meaningful opportunities to compete in select international markets: the Middle East, Africa, South America, Mexico and Asia-Pacific,” GM China President John Roth said in a release.<\/p>\n Zoom In IconArrows pointing outwards<\/p>\n The optimism about exporting comes as China quickly went from a reclusive market to the largest global exporter<\/a> of vehicles in recent years.<\/p>\n China’s growth has been fueled by government funding for companies as well as a culture of innovation and speed the country has instilled in its workers, experts have said. But a slowing Chinese market and plant underutilization have forced companies to begin exporting to major auto markets globally.<\/p>\n China was GM’s top sales market from 2010 to 2023, but the shifting dynamics caused the Detroit automaker and its joint-venture partners to restructure operations.<\/p>\n The automaker’s earnings from China fell from around $2 billion annually in 2018<\/a> to two consecutive years of losses in 2024 and 2025. GM has reported $248 million in equity income through the first six months of this year following restructuring actions that cost the automaker $1.1 billion in special charges<\/a> last year.<\/p>\n GM reports the joint venture has produced and delivered more than 20 million vehicles since it was established in China.\u00a0<\/p>\n