Even with building tension in the trading relationship between the United States and China, Chinese automobile company Great Wall Motor (SHA:$601633) announced on Monday, August 21st, that it wants to acquire the Jeep brand. The news also comes at a time when the automobile industry is facing a drastic change as more and more people gravitate towards electric vehicles.

The Jeep brand – which is owned by Italy-based automobile company Fiat Chrysler Automobiles (BIT:$FCA) – is best known for its sports utility vehicles and pickup trucks, both of which are extremely popular in China. However, Fiat has stated that it has yet to hear any proposals regarding the Jeep brand or other related business ventures from the Great Wall. This suggests that a lot has yet to be done before any deal or agreement can be finalized between the two companies. Despite the lack of communication between Fiat and Great Wall, Fiat’s stock has gone up by almost 7% on Monday, August 21st following the news.

Great Wall’s interest in Fiat suggests that China is still working towards having a larger presence in the global auto industry. A number of Chinese automobile companies have expressed interest in expanding internationally recently, including Great Wall Motor. The fastest way to expand one’s business, as many companies know, is to acquire an existing company.

As such, Great Wall’s hope to acquire the Jeep brand makes a lot of sense. Great Wall Motors have been struggling to garner success with most of its newer models in China. However, its since then seen revenue and profit from its SUVs models more than anything else. Additionally, Fiat’s CEO Sergio Marchionne has been suggesting that the company was looking for a buyer. Fiat would be relatively cheap for Great Wall to acquire, as the Italian automobile company is only valued at around $19 billion currently on the market. If Great Wall does manage to acquire Fiat, they not only will get its Jeep brand, it will also own the Chrysler, Dodge, Ram, Fiat, Alfa Romeo, and Maserati brands.

The Jeep brand has had a long-time relationship with China – it was one of the first international brands to enter the country in the 1970s, which allowed for a joint venture named Beijing Jeep to be established in 1983. The Jeep brand has since then seen a larger number of customers in China. However, after Chrysler bought American Motors (which had initially owned the Jeep brand) in 1987, the company decided to stop expanding its auto productions in China. Chrysler had hoped to import Jeeps from the U.S. instead, but due to Chinese taxes on imported vehicles, Jeep-branded cars were almost two times as expensive in China compared to other countries. As such, Chinese-based automobile companies were able to make use of similar manufacturing methods and compete with the international companies because its cars were most likely cheaper than the imported vehicles. This has been common throughout a number of businesses, including diesel freight locomotives, high-speed electric trains, and power station turbines.

Now, despite Fiat’s plans to expand its production efforts in China (something it was wary of in 1987), the Italian-based automobile company now has to compete against now-established and financed domestic companies. With the power that domestic companies now wield, it looks like Great Wall could really purchase Fiat.

However, for Great Wall to acquire Fiat, the company may face a number of problems in the process. America has been calling for more thorough reviews before signing on to any foreign deals and President Donald Trump has been known to criticize America’s trade relationship with China. China, on the other hand, is also limiting its acquisition of foreign entities for fear that the country is spending too much.

If the Great Wall were to acquire Fiat and the Jeep brand successfully, it could be one of the first foreign auto makers to gain recognition worldwide – something Chinese automobile companies have struggled immensely with.

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