As global auto companies look for ways to cut costs, "China is a natural" to produce "built-up cars and components," Mr. Wagoner said during a visit to China as part of a group of international business leaders.

Most foreign auto-making ventures in China are aimed almost entirely at producing vehicles for local buyers as more and more Chinese join the ranks of the middle class. But, increasingly, car companies are looking at China as a possible low-cost production base.

GM sends engines made by one of its joint ventures with state-controlled Shanghai Automotive Industry Corp. to its plants in Canada and the U.S. The partners have also exported small numbers of a Chevrolet hatchback, designed by a GM affiliate in South Korea, from China to Russia and Chile.

Honda Motor Co. of Japan exports its Fit compact to Europe from a plant in southern China, while DaimlerChrysler AG is in talks with state-owned Chery Automobile Co. of China about making small cars under the company's Dodge brand for sale world-wide.

Mr. Wagoner said he doesn't expect GM will build cars in China for sale in the U.S. anytime soon. The company has plenty of manufacturing capacity in the U.S., he said, so shipping cars there from China would be a "relatively low priority." More likely, he indicated, are exports of China-built autos to other developing countries.

Business in China has been getting tougher, as competition stiffens between the growing numbers of international car makers and domestic manufacturers entering the market. Chinese buyers are also increasingly opting for small cars, which are less profitable for manufacturers.

Mr. Wagoner said that GM is working to cut costs in its China operations, in part by buying more parts locally, so that it can lower prices while maintaining healthy profit. "Profit is still, frankly, quite good," he said.

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