Daimler said it has received Chinese government approval for a truck joint venture in this country.
Currently, the world's vehicle makers look to China for growth amid a global economic slump.
In a statement, Daimler Truck, a unit of the German company, would hold a 50% stake in the venture, said, the company would have annual production capacity of 160,000 trucks.
The Chinese partner in the joint venture - Foton Motors - is a major manufacturer in China's truck market, selling 105,000 vehicles in 2010. Foton is a subsidiary of the BAIC Group (Beijing Automotive Industry Corp).
Daimler chairman Dieter Zetsche said "This is an important step for the global growth strategy of Daimler, as well as the local expansion of our portfolio,"
The two companies signed a joint venture agreement in July 2010, but financial details of the project on undisclosed.
