DaimlerChrysler has said it will increase its purchases in China eightfold in the next two years, according to Reuters.

This will bring total spend in China to US$840m by 2008, up from US$100m today.

Volkswagen announced in February that it would increase its sourcing from China to US$1bn a year, up from US$100m in 2005.

Volkswagen already has more than 800 suppliers in China.

The additional components would be exported worldwide and help Volkswagen raise the local content in its Chinese plants to 80% by 2008.

Sourcing from China is becoming easier since global suppliers have stepped up investments there.