BMW AG stands to become the first foreign car manufacturer to own a majority in a Chinese joint venture, showing China is following through on a pledge to increasingly open up the economy to global corporations.

BMW plans to unveil the new ownership structure in its joint venture with Brilliance China Automotive Holdings Ltd. soon, according to a person familiar with the plan. BMW now holds 50 percent of the venture.

BMW chief executive officer Harald Krueger was in Berlin at the start of the week during a summit between Chinese Prime Minister Li Keqiang and German Chancellor Angela Merkel.

Among discussions were opportunities to open up China more to foreign investment.

BMW declined to comment on the state of its discussions with Brilliance. The German company is set to boost its stake in the venture to at least 75 percent, Manager Magazin reported earlier. Brilliance, which now owns 40.5 percent of the venture, didn’t immediately return a call and email seeking comment.

Owning a larger slice of BMW Brilliance Automotive would come at an opportune time for BMW. The company is heavily reliant on output from its factory in the United States, where BMW makes sports utility vehicles for the global market.

That strategy risks coming under strain as a trade war between the United States and China starts escalating, potentially raising the prices of vehicles exported from the United States.

(SD-Agencies)