"The Ministry of Commerce and the National Development and Reform Commission (NDRC) both hold a supportive attitude toward Chinese companies venturing abroad," Yao Jian, ministry's spokesman was quoted as saying by Reuters.
Tengzhong and the Chinese government entered talks in late June over the Hummer deal, with threats of blockage hanging over head.
"We don't have a definitive agreement but we're developing our proposals with GM and Hummer, and we'll continue to engage with the appropriate authorities in the appropriate manner," Christina Stenson, Brunswick Group (PR agency for Tengzhong) spokeswoman said at the time.
The main reason behind a projected rejection of the deal by the Chinese side is the fact that, being a construction machinery manufacturer, the Chinese say the company lacks the required expertise to own a car manufacturer.
Additionally, concerns regarding Hummer vehicles' appetite for fuel were also among the reasons because of which the deal might have been rejected.
"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 said in a news conference.
According to the spokesman, Tenghzong is yet to submit an official application from the Chinese company. According to Chinese laws, any deal valued above $100 million has to be approved by the country's top economic planner.
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