Report: China likely to reject Hummer acquisition due to energy, business concerns

Report: China likely to reject Hummer acquisition
Report: China likely to reject Hummer acquisition due to energy, business concerns

BEIJING (AP) -- China's planning agency is likely to reject a Chinese company's bid to acquire General Motors Corp.'s Hummer unit, in part because its gas-guzzling vehicles conflict with Beijing's conservation goals, state radio reported.

The National Development and Reform Commission also is likely to say Sichuan Tengzhong Heavy Industrial Machinery Corp., a maker of construction machinery, lacks expertise to run Hummer, China National Radio said late Thursday. It cited no source.
Employees who answered the phone at the NDRC referred questions to its foreign affairs office, where calls were not answered. Tengzhong spokespeople did not immediately respond to phone messages.

Hummers, which roar along on oversize tires and can weigh up to five tons, are based on U.S. military vehicles that gained fame during the 1991 Gulf War. But its sales have been battered by soaring fuel prices.
Tengzhong, based in the southwestern city of Chengdu, emerged as Hummer's surprise buyer this month after GM sought court protection from its creditors. The companies said the sale still required regulatory approval and refused to disclose the price.
Auto industry analysts questioned how Tengzhong, which makes construction vehicles such as cement mixers and tow trucks, could succeed with Hummer, known as "Han Ma," or Bold Horse, in China.
GM said the planned sale would save some 3,000 jobs in the United States. Tengzhong said it planned to invest in research to create more fuel-efficient Hummers. The company said it would keep Hummer's headquarters and manufacturing in the United States.
The Chinese government is trying to promote conservation and use of more fuel-efficient vehicles. It has cut sales taxes on cars with smaller engines and is encouraging automakers to develop electric and other alternative-energy vehicles.

Remembering Tiananmen

Remembering Tiananmen
(02:01) Report Reuters Video

Jun. 2 - Wang Dan, a former student activist in China, recalls the crackdown on Tiananmen Square some 20 years ago.

SOUNDBITE: Wang DanDeborah Lutterbeck reports.




Twenty years after Tiananmen
Silence on the square

Outside the Communist Party, memories of the 1989 massacre get hazy

(Source Economist.com) AMONG journalists at a Chinese newspaper, there has been some surprising talk of publishing a story to mark the 20th anniversary on June 3rd and 4th of the massacre of hundreds of Beijing citizens by Chinese soldiers. One journalist even told his colleagues he would be ready to go to jail for doing so. But such bravado, especially if it proves more than rhetoric, is likely to be rare. For many in China the nationwide pro-democracy protests of 1989 and their bloody end have become a muddled and half-forgotten tale.
This does not stop the Communist Party worrying about the issue. It fears that the efforts of even a small number of people to keep memories alive could be destabilising. The most senior official to serve jail time for his role in the Tiananmen Square unrest, Bao Tong, has been escorted by security officials from his Beijing home to a scenic spot in central China (far from muttering journalists) where he will spend the anniversary period. Mr Bao agreed to go, says a family member. But in China an invitation from the police can be awkward to refuse. Several other dissidents report heightened police surveillance.

This year’s anniversary has spurred a hardy few to pronounce on the massacre. A Beijing academic, Cui Weiping, told a gathering of intellectuals called to commemorate it that the party’s campaign to deter public discussion of Tiananmen, and public acquiescence to it, had damaged China’s “spirit and morality”. She posted her remarks on her blog.
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