A GENERAL Motors-linked company has set up its third joint venture in China in a year to produce car parts. The Packard Electric (Shanghai) US$18 million joint venture between Packard Electric China (PEC) and Shanghai San Lian Automobile Harness Co will produce parts for car makers on the mainland and for export. PEC is an affiliate of Ohio-based Delphi Packard Electric Systems - a division of Delphi Automotion Systems under the General Motors group. PEC's other investments in China, worth $20 million, are Packard Electric Bai Cheng, which makes car wire and ignition cables, and Packard Electric Hebi, which makes components for electrical connections. Explaining the rationale for the three investments, Delphi general manager David Heilman said: 'We believe the car industry in China will grow very rapidly in China and we want to be part of it.' He said that besides these ventures General Motors was 'contemplating major investments in China'. Mr Heilman was not concerned about the impact of the inevitable lowering of car tariffs on the group's ventures when China gained membership of the World Trade Organisation. 'The latest venture in Shanghai will produce for exports to the United States first, which means we have to maintain international standards from the very start,' he said.