China To Block Hummer Buy By Chinese Co - BBC
26 Juni 2009 - 4:07PM
Dow Jones News
Sichuan Tengzhong Heavy Industrial Machinery Co. will be blocked
from buying General Motors Corp.'s (GM) Hummer brand by Chinese
authorities on environmental grounds, the BBC reports on its Web
site Friday, citing Chinese state radio.
The sale of Hummer to the little-known Chinese manufacturer of
dump trucks and industrial machinery had been supported by the
Obama administration, but faced difficulties getting Beijing's seal
of approval.
The BBC quotes China National Radio saying that Hummer is at
odds with China's attempts to decrease pollution from Chinese
manufacturers. The state radio station said the National
Development and Reform Commission will also block Tengzhong Heavy's
acquisition of Hummer because the Chinese company lacks the
expertise to produce cars.
Tengzhong needs suuport from three different Chinese government
agencies governing overseas investment, economic planning and
China's tight controls on foreign exchange.
Full story: http://news.bbc.co.uk/1/hi/business/8120231.stm
-By Steve McGrath, Dow Jones Newswires; 44-20-7842-9284;
steve.mcgrath@dowjones.com