Sichuan Tengzhong Heavy Industrial Machinery’s $150 million bid for GM’s Hummer division has fallen through having failed to win approval from Chinese regulators. GM says it will begin winding down the iconic brand. The Commerce Ministry, as we predicted, was uncomfortable with the proposed deal and seems to have seen it off by not approving it rather than rejecting it outright. It has been an open secret that some officials weren’t keen on a Chinese company buying the poster child for American gas guzzling extravagance, while others felt uneasy about private vehicle makers expanding abroad ahead of state-owned ones.
Update: Some thoughts on Chinese investments in the U.S. that make sense at China Law Blog.