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More General Motors Auto Parts and Vehicle Units to be Transported to China

For the next four years, 800 million dollar worth of auto parts by General Motors Corp., together with more than 20,000 Buick Enclave sports utility vehicles will be transported to the Republic of China.  This is the outgrowth of a business contract that was recently entered into by General Motors and its Chinese commercial associate Shanghai Automotive Industry Corp.

According to a report from freep.com, the contract, which was made in Washington, ensures the Chinese division of General Motors of a wide array of luxury vehicle models, which include premier brands such as Saab, Buick, and Chevrolet.  The substantial downpour of these luxury automotive brands to China resulted from the high expectation of the internationally acclaimed auto manufacturer.  It anticipates that the sales of General Motors vehicles will reach 1 million for this year.

General Motors in effect relies to some extent on the thriving auto parts market in China for its international development.  In point of fact, China has sold nearly 300,000 Buick units last year.  For this reason, General Motors greatly moves its Chinese division forward through entering agreements that guarantee the tight business interaction between the two parties.  

From the freep.com news, it was reported that General Motors Vice President of Global Sales, Service and Marketing John Middlebrook confirmed that General Motors is actually shelling out almost one billion dollars every year just to advance its branch in China. According to Middlebrook, China has turned out to be the biggest market of General Motors aside from the United States.  Moreover, for more than 10 years now, the division of General Motors in China has already obtained auto units, parts, facilities that amount to approximately 3 billion dollars.

Despite the honest business intention of General Motors toward its deal with Chinese business partners, some United States officials are in favor in prohibiting the American multinational auto maker from establishing business relationship with China.  The reason behind U.S. official’s yearning to impede the business between General Motors and its Chinese partner stems from the fact that the total commercial debit of U.S. with China already reached approximately 23 billion dollars in the month of July.