What to Know About Daimler in China After Geely's Big Investment

Billionaire Li Shufu becoming the largest shareholder of Daimler AG is poised to shake up the dynamics of the Chinese auto industry, where local brands use partnerships with Western manufacturers to gain technology and prestige.

Li’s purchase of a stake of almost 10 percent in the owner of Mercedes-Benz boosts the prospects of his car company Zhejiang Geely Holding Group Co., while raising questions for electric-vehicle maker BYD Co., a Chinese rival that’s backed by Warren Buffett. As Li tries to bring Geely closer to Daimler, the future of BYD’s partnership with Daimler may be up in the air, according to Bloomberg Intelligence.