China regulators back Tengzhong-Hummer deal

Shanghai, July 15 (Gasgoo.com) China's commerce ministry today downplayed media reports that it is at odds with the country's economic planning body over a controversial deal for a little-known Chinese company to buy GM's Hummer unit, Reuters said.

"The Ministry of Commerce and the National Development and Reform Commission (NDRC) both hold a supportive attitude toward Chinese companies venturing abroad," said the ministry's spokesman Yao Jian.

Citing a politically connected source, Reuters reported yesterday that the NDRC seemed to oppose the deal, due partly to environmental concerns about the fuel-hungry Hummer car and the vague plans that suitor Sichuan Tengzhong Heavy Industrial Machinery has for the brand.

"This is not a decision for the government. It's an active strategy for companies in the course of globalization. That's a long-term trend," Yao told a news conference.

China's Caijing magazine quoted an NDRC official as saying Sichuan Tengzhong had submitted documents related to its bid to the top economic planner.

However, Yao said his ministry, which must approve any deal valued above $100 million, had not received an application from Tengzhong.