Regulators brings a gleam of hope for Tengzhong

The spokesman for China's Ministry of Commerce (MoC) pointed out on Wednesday that both "the MoC and the National Development and Reform Commission (NDRC) hold a supportive attitude toward Chinese companies venturing abroad."

Yang Jian meant to deny earlier media reports that it is at odds with the country's economic planning body over the deal for Sichuan Tengzhong Heavy Industrial Machinery to buy GM's Hummer unit,

"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 was quoted as saying. What lies between the lines: we are indeed in favor of this.

Despite concerns over the environmental issue and Tengzhong's management capacity, the critical thing now for Tengzhong to do is to present a plan on how to produce more fuel-efficient Hummers and keep a long-term affluent investment following the acquisition.

Yang's words have brought a gleam of hope for Tengzhong temporarily. Now it Tengzhong's turn to show how it can make the brand more and more stronger.

 
A Chinese couple looks at one of the first U.S.-made Hummers
to be displayed in China in February 1998. (Photo: AP)