Volkswagen to set up auto parts factory in Tianjin

German automaker Volkswagen AG signed an agreement on Thursday to establish a factory in Tianjin as part of the Sino-German economic and cooperation agreement signed during German Chancellor Angela Merkel's current visit to China.

The German auto company will invest in building an auto parts factory in the coastal city in China, according to the agreement. Volkswagen AG didn't release the financial details of the deal.

This move indicates that Volkswagen AG remains optimistic about the future of China's automobile market, according to officials from the Tianjin Economic and Technological Development Area's management committee.

ALL THE INFORMATION IS FROM SINA WEIBO.