GM Is in Talks to Extend China Venture With Demand Recovering

General Motors Co. is in preliminary talks to renew its longtime joint venture with China’s SAIC Motor Corp., signaling the US automaker’s budding optimism about its business in the world’s largest auto market after years of decline.

The two sides are exploring elements of a potential agreement, including which vehicle models and plants would be involved if a deal can be reached, according to people familiar with the matter. The talks are at an early stage and final terms have not yet been agreed upon, said the people, who asked not to be identified because the talks are private.