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The joint venture (JV) between General Motors (GM) and Shanghai Automotive Industry Corporation (SAIC) in 1997, was regarded as the largest single foreign investment ever made in China. The JV was considered by many as a high-risk investment for GM at that time. Eight years after the signage of the joint venture, GM proved to the world that its investment in China was justified, with its growing market shares and successful partnership with SAIC. The case attempts to understand the strategic alliance between GM and SAIC and how the relationship contributes to the success and rapid growth of GM in China. It also analyses the strategies adopted by GM and the potential threats and challenges imposed on foreign automobile companies in China. The case sheds lights on devising viable strategies for foreign companies to enter emerging markets.