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BMW is taking an unprecedented move for foreign automakers in the world's biggest car market, China.
The German company said Thursday (October 11) it's paying around $4 billion to take control of its business in China.
It's buying a majority stake in its local partner, Brilliance, the first move of this kind by a global auto maker.
For years, China has forced them to go in with a partner if it wants in to the local market.
However, Beijing is beginning to relax the rules.
Up to now, foreign automakers have been capped at 50 percent ownership of ventures here.
That change already helped Tesla gain Beijing's approval to open a factory in Shanghai without a partner.
But BMW's plan lifts its ownership to 75 percent.
CFO, Nicolas Peter, told Reuters the deal will give the company a leg-up in China.
SOUNDBITE (English) BMW CHIEF FINANCIAL OFFICER, DR NICOLAS PETER: "We have increased the length of our partnership to 2040 and we've decided to increase our capacity in Shenyang up to 650 000 cars which is a key element in our China strategy which is based on the assumption that this market will continue to grow in a significant way in the next couple of years." And it all comes in the context of the rapidly escalating trade conflict between Beijing and Washington.
That means the deal may be bad news for some regions of the U.S. like South Carolina.
Right now, that's where BMW makes many of the SUV models that dominate the Chinese market.
But analysts say the new deal could see BMW move production of those cars outside the U.S.