London (CNN Business) Daimler and China's BAIC are the latest carmakers to take their relationship to the next level.

Daimler DDAIF The German owner of Mercedes-Benz confirmed Tuesday that its Chinese partner, BAIC, has acquired 5% of its shares.already owns 9.6% of the listed subsidiary BAIC Motor.

"This step reinforces our successful partnership and is a signal of trust in the strategy and future potential of our company," Daimler executive Ola Källenius said in a statement.

Mercedes-Benz cars are manufactured in China via a partnership between the two companies.

China is the luxury brand's largest market, accounting for more than a quarter of global sales in 2018.