The world's auto industry is getting a shake-up from Chinese automakers that are quickly expanding across the globe, offering relatively affordable electric vehicles designed to wow car buyers with sleek designs and the latest high-tech interiors.

Andreas Rentz/Getty ImagesSTUTTGART, Germany - Daimler and China's BAIC are the latest carmakers to take their relationship to the next level. The German owner of Mercedes-Benz confirmed Tuesday that its Chinese partner, BAIC, has acquired 5% of its shares. Daimler already owns 9.6% of the listed subsidiary BAIC Motor. Li Shufu, chairman of another Chinese carmaker Geely, owns 9.7% of Daimler. The BAIC investment reflects two industry priorities: Global carmakers are teaming up with Chinese rivals to improve their standing in the huge market, and they're partnering to share the cost of developing new technologies.