General Motors (NYSE:GM) is the largest-selling automaker in China, but its Cadillac brand has just a tiny share of the fast-growing Chinese market for luxury cars. GM is spending big to change that, but the German luxury brands already have much of the market locked up.

Now, though, a trade war between Europe and China could lead the Chinese government to slap big taxes on German luxury cars – a move that could help boost Cadillac's expansion plans. In this video, contributor John Rosevear looks at what the Chinese government is threatening to do, and why – and at how GM might benefit.

Fool contributor John Rosevear owns shares of General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends BMW and General Motors. 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.