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"Global institutional investors would no longer have the option of staying away from China's markets if they wanted to achieve above-benchmark returns," Liu said. "China's capital market reforms in the next five to 10 years are reshaping global asset allocation."

"For example, WeChat's strong functionalities can meet one's daily needs without leaving the app, but that level of user engagement (of Douyin) allows it to bypass bigger rivals' platforms," said Liu Dingding, a veteran internet analyst in Beijing.

"Having considered such factors, the two are conducting an overall appraisal of their cooperation," said one of the people with knowledge of the matter.

"Ford is not behind on the technology," Sherif Marakby, the head of the company's electric vehicle program, said in an interview. "What's important is that this team makes sure to create a viable and profitable business. Our absolute goal is profitability."

"Green transition is a big challenge for the firm, but it is also a great opportunity," Li said.