Tax cuts, subsidies boon for GM China

General Motors Corp can thank US taxpayers for $13.4 billion in loans that have kept it running. The carmaker can also thank China's government, which is kicking in subsidies of as much as $1,170 to help it sell vans.

The automaker's China minivan venture boosted sales 32 percent in the first two months after a cut in retail taxes on small vehicles. The government is now giving out 5 billion yuan in subsidies to spur auto sales in rural areas.

GM doubled its 2009 forecast for China's market growth as the tax cuts and subsidies revived demand. By contrast, the US carmaker's domestic sales have slid 51 percent, forcing it to seek as much as $16.6 billion more in government aid.