China is a 21st-century car manufacturer's playground. There is plenty of people who want to buy a car, so car manufacturers are making plenty of cars for them to buy.
Mercedes-Benz is a part of this trend. Mercedes-Benz has created tailor-made models for the Chinese market, like the C-Class L. Benz is also expanding with both increased manufacturing capacity and the introduction of other new models.
One of those new models will be the Mercedes-Benz GLA. While the initial models are going to be imported from Rastatt, Germany starting this fall, GLA production for China will be done in China at a plant co-owned with their Chinese partners Beijing Benz by the end of 2015.
In China, the Chinese GLA will have to battle the BMW X1 and the Audi Q3, which are also being built in China.
Another thing that could be in the future for Mercedes-Benz China is the production of a long-wheelbase version of the GLA. That hasn't been announced yet, but it wouldn't be very surprising if it does get developed.