Chinese Regulators Supportive of HUMMER Deal

Wed, Jul 15, 2009

Hummer News

2008 HUMMER H2On Tuesday it was reported that two of China’s regulators, the Ministry of Commerce and the National Development and Reform Commission (NRDC), had opposing opinions regarding Tengzhong’s bid to purchase the HUMMER brand from GM. According to Reuters, a ministry spokesperson played down those reports Wednesday.

“The commerce ministry and the National Development and Reform Commission both hold a supportive attitude toward Chinese companies venturing abroad,” said ministry spokesperson Yao Jian.

On Tuesday, Reuters had reported that the regulators at the NRDC was skeptical of the deal given the perception of HUMMER and Tengzhong’s plans to become an international automaker.

“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,” said Jian, adding that his ministry had not yet received an application, which was typical given the timeline and lengthy approval process in China.

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