(Photo: CGTN)

The tentative trade deal announced between the U.S. and China will help clear some of the murkiness that has dented growth and investment in the auto industry.

Michael Martinez, of Automotive News said that a deal would help companies better plan for the future.

"It’s a relief for all these companies to finally plan their product investments, plan their manufacturing strategy with some level of certainty," Martinez said.

"You can start to see more vehicles being imported/exported and that would be good news for the companies, for the workers, suppliers, dealers, all down the value chain."

Electric vehicle makers are also keeping an eye out. Sixty percent of EV unit sales come from China.

"You don’t want to be left behind especially in China, it is a very important market," Martinez said.

"It is going to be a vital market going forward. And some of the companies that did invest late, sort of pay the price over there. You have more the established players that have been there for a few years, doing better in terms of sales and market shares. So you want to invest in China."