Several car makers have sprung up in China thanks to funding from provincial governments and one manufacturer has already booked a stand at the Detroit Motor Show this week.

It is enough to send a cold shiver down the back of the European and American big names who are already scrambling to find places in the old eastern bloc countries to build new plants with cheaper labour and spare parts.

Fiat is already in a spat with one of the biggest Chinese companies, Great Wall Motor, which has started exporting to Europe.

Fiat claims the Chinese company's new minicar, the Peri, is very like the Fiat Panda, Europe's best selling minicar and is considering legal action.

Great Wall will start selling the Peri in China in March and plans to start selling vehicles, SUVs and pick-ups (and possibly the Peri) in Italy in September.