Cadillac will produce its XTS flagship in China.

Confirming earlier reports, Cadillac announced today at the Beijing Motor Show that it will build its XTS flagship sedan in China. Cadillac will build the XTS through a joint-venture partnership with Shanghai General Motors.

"China is the second-largest market for Cadillac, and of course is one of the largest and strongest markets in the world for luxury cars, so it is a core part of our vision as a brand," said Don Butler, Cadillac vice president of marketing.?' "It is projected that by the end of the decade half of all luxury purchases in the world - all categories, not just cars - will occur in China."

Cadillac will begin Chinese production of the XTS this fall. Although not the first Cadillac-badged model to be produced in China - that distinction belongs to the SLS - the locally-built XTS will represent the brand's first serious attempt at cracking the world's largest auto market.

No word on how many XTS sedans Cadillac plans to sell in China per year, but the automaker sold a record setting 30,000 vehicles in the country last year.