Great Wall Motor said it had called off its collaboration with Chrysler, adding another setback to the United States carmaker over the past three months.
Anhui-based Chery Automobile announced in December it had stopped working with the US carmaker because of different business directions and priorities.
Chrysler, which has received a financial bailout from the US government, has been seeking joint-venture partners in the growing Chinese vehicle market after separating from Germany's Daimler.
Great Wall chairman Wang Fengying told China Business News the company put off its co-operation with Chrysler because of 'changes in the two carmakers that deter them from making substantial decisions'.
Great Wall and Chrysler announced in July last year a substantial tie-up in various areas, including distribution, component manufacturing and technology sharing.
'[We] should have planned to assemble some medium-range vehicles for Chrysler, but now we'd like to focus on building own-brand passenger cars,' said Ms Wang.