BY JOSEPH B. WHITE AND NORIHIKO SHIROUZU

SAGINAW, Mich.—This struggling city, staggered by a flurry of blows during the recession, is getting a lift from an unlikely place.

Nexteer Automotive, Saginaw's biggest remaining industrial employer, was on the verge of closing less than three years ago, its 3,000 or so jobs in danger of evaporating, when the Chinese showed up. "If their money helps rebuild the community, I'm cool with it," says Mayor Greg Branch.

In 2010, Pacific Century Motors, controlled by Aviation Industry Corp. of China and Beijing E-town International Investment Co., an investment arm of the city of Beijing, bought the money-losing auto-parts maker from ...