U.S. Taxpayer bails out GM, now China Gets a Piece?

At first blush most people will probably be outraged China would buy a stake in GM. This is from the impending IPO (or initial public offering).

In a sign of the changing fortunes of the world's top two economies, China's biggest auto maker, SAIC Motor Corp., is negotiating to acquire a stake of about 1% in General Motors Co. worth about $500 million, according to a person familiar with the matter.

The U.S. auto maker also is prepared to sell more than $1 billion worth of shares to sovereign wealth funds in the Middle East and Asia. Combined, the sales would give foreign investors roughly 16% of the shares to be sold next week under an initial public offering of stock, and give them a stake of some 4% in the Detroit auto maker.

Pretty incredible huh? We bail out GM and now China buys a piece? That said, with the impending trade war and considering GM's sales and existing joint ventures in China this should come as no surprise.

Shame the government didn't do a better job of negotiating U.S. jobs in the bail out mix.

GM's IPO is due to be priced next Wednesday: