Aug 8 (Reuters) - General Motors ( GM ) said on Thursday

it was committed to building a profitable and self-sustainable

operation in China, despite facing stiff competition from local

brands and growing pressure to exit the Chinese market.

Shares of GM rose 4% in morning trading.

"We're committed to maintaining cash stability there at a

point where it's self-sustaining. That means not needing any

capital from outside," GM CFO Paul Jacobson said at an auto

conference organized by J.P. Morgan.

Global automakers have struggled to make headway in China as

local manufacturers continue to release feature-packed

affordable models.

GM has also been facing increasing investor scrutiny on its

China operation, which in the past decade has shifted from being

a profit engine to a drain on the company's finances.

Jacobson said the Detroit automaker's operations in China

could be a good asset but reaffirmed that it needed some

restructuring.

"I don't necessarily accept the notion that we're struggling

to make money there," Jacobson said.

A leading automotive analyst in June also called on the

Detroit Three to withdraw from China to save cash to spend on

costly EV production.

GM recorded a $104 million loss in China during the second

quarter, a disappointment after executives said they expected to

be profitable in the region.

(Reporting by Nathan Gomes in Bengaluru and Ben Klayman in

Detroit; Editing by Anil D'Silva)