Is the Chinese Government Helping Cadillac?

General Motors (GM 0.11%) 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, Fool.com contributor John Rosevear looks at what the Chinese government is threatening to do, and why – and at how GM might benefit.