General Motors is taking a $5 billion-plus hit on its operations in China

General Motors is set to take a hit of more than $5 billion on its operations in China amid an onslaught of competition from local rivals.

The Detroit automaker said it would write down the value of its joint-venture operation with Chinese partner SAIC Motors by as much as $2.9 billion and incur a further $2.7 billion in charges as it looks to restructure the business, according to a securities filing released on Wednesday.

GM shares fell 1.3% in premarket trading.

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