7.15China regulators back Tengzhong-Hummer deal

China regulators back Tengzhong-Hummer deal

 

http://autonews.gasgoo.com/auto-news/1011319/China-regulators-back-Tengzhong
-Hummer-deal.html

 

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.

 

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