China Investment, the country’s investment vehicle group, is interested in buying a stake in Daimler ranging from 4 percent to 10 percent.
Daimler CEO Dieter Zetsche has said he would welcome a Chinese investor in the company. Company spokeswoman Silke Walters declined to comment on the report but said: "In general, we always welcome any new investors as a balanced shareholder structure is in the interest of Daimler."
The possible investment comes at a time when the Mercedes-Benz parent company is conducting a shake-up of its troubled Chinese operations. In December, Mercedes-Benz sales in China plunged nearly 19 percent year-on-year to 18,910 units, as the company struggled to keep pace with Audi and BMW.
Mercedes is reorganizing its sales network in China, combining separate entities for locally and imported cars into one company.