China's biggest carmaker SAIC Motor Corp

China's biggest carmaker SAIC Motor Corp In a deal certain to inflame existing trade sensitivities, China's biggest carmaker SAIC Motor Corp is reported to be in negotiations with General Motors for a 1% stake in the US carmaker.

In addition to the $500m deal, a US treasury-backed IPO next week – designed to reduce the government's 61% stake in the manufacturer – could place 4% of the firm in Asian and Middle Eastern ownership.

The deals are politically sensitive and follow several transactions in which significant stakes in US firms, including Morgan Stanley, Blackstone and IBM, have been transferred to Chinese government-backed ownership.