CHICAGO - General Motors has been given green light by China to build a 1.3-billion-US-dollar factory in Shanghai, the automaker confirmed Tuesday.

The plant will be located in Shanghai's Jinqiao district, GM said in a statement. Construction is to begin in June, according to Chicago Tribune.

GM said the planned production capacity for the factory is 150, 000 vehicles.

"We want to build where we sell. That is very important to us," said Alan Adler, a GM spokesman in Detroit.

GM has a strong presence in China, with a market share of 15.2 percent, according to Daniel Ammann, GM Chief Financial Officer and Senior Vice President.

Daniel Francis Akerson, GM Chairman and Chief Executive Officer, has repeatedly talked about the importance of Chinese market.  

Akerson said the company has a "drive targeted to triple Cadillac's annual sales in China to 100,000 units by the end of 2015." He made the remarks during the company's first-quarter earnings teleconference last week.