GM Awaits Chinese Approval on Contract

General Motors Corp. and a Chinese corporation are expected to sign a $1-billion contract setting up China’s largest mid-size automobile production venture, state-run media reported. The State Council, China’s Cabinet, approved the planned joint venture last month, and it now awaits approval from the Foreign Trade Ministry, the China Daily Business Weekly said. The venture between Detroit-based GM, the world’s largest auto maker, and Shanghai Automotive Industry Corp. will produce 100,000 vehicles a year in Shanghai and is expected to help reduce China’s dependence on imports of mid-size cars, the newspaper said. At least 40% of the cars will be produced from parts made in China, the newspaper quoted GM Vice President Rudolph Schlais as saying.