GENERAL Motors Corp, which managed to stave off bankruptcy after a government bailout in the United States, is expanding its presence in the commercial vehicle market in China by setting up a second venture.

The car maker said it will cooperate with China's FAW Group Corp to form a commercial vehicle venture in the country. Both companies have registered a name for the new venture, GM's statement said without giving other details.

It would be GM's second commercial vehicle venture in China after its minivan and passenger car venture with SAIC, China's the biggest car maker.

FAW owns a light commercial vehicle plant in southwest China through its FAW Hongta subsidiary which is able to turn out 150,000 units annually.

GM is counting on emerging markets such as China and Russia to help offset a sales slump in the US.

Analysts, including Wang Liusheng at Merchant Securities Co, said the latest move may create a winning situation as FAW could tap GM's advanced technology to expand production and GM could trim reliance on its only Chinese partner SAIC Motor Corp.

They added GM could also gain by widening its product portfolio in the commercial vehicle market.