There was an article I came across about Cherry Automotive of China.
I think the reason Mercedez Benz started to take cautious steps in China is due to copyright infrigement of its designs. The Mercedez Benz had its E-series copied almost entirely by Cherry, The cherry version called Jiali, I think in 2002 or 2003.
MB complained to Chinese government but to no avail.
I think GM also ran into copyright of its design issues with Cherry and some other Chinese Auto companies.
But It does not matter. Every automobile firm copies or shares the basic plateform upto some extent. The Auto-Industry is no longer one Nation's exclusive domain.
There are many US GM, Ford products being made in Korea, or vice-Versa.
Overall, its a good news for Pak. There will be alot more choice for consumer and just a monopoly of two or three, assembler. The important thing is to Manufacture and ultimately design these cars in Pakistan entirely with help of China and then later independently. Since China is the only country which has tranfer alot of sensitive technology in all fields to Pakistan. i.e. Chasma Nuclear power plant, various Missiles, The JF-17 jet and many more defense projects. Its a good news if Chinese civilian companies are helping to transfer engineering technology to Pakistan.