The Chinese government just announced a shift in policy, moving to encourage foreign automakers to invest in factories in the country's up-and-coming western region. That's likely to be a boon for General Motors (NYSE:GM), which recently said that it's planning to invest $11 million in new investments in China.

In this video, Fool contributor John Rosevear looks at GM's big expansion plans for China -- and at the moves being made by its key rivals to take advantage of this big new market.

Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.