Bankrupt General Motors proposed sale of its premium brand Hummer to China-based Sichuan Tengzhong Heavy Industrial Machinery will need green signal from the Chinese authorities.

"The biggest hurdle to the sale of General Motors Corp's Hummer brand to a little-known Chinese manufacturer of dump trucks and industrial machinery may be receiving Beijing's seal of approval," The Wall Street Journal has reported.

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The daily has said Obama administration has already expressed strong support for the proposed sale of Hummer to Sichuan Tengzhong Heavy Industrial Machinery.

"But before it can buy Hummer, Tengzhong, based in Sichuan province, needs support from three different Chinese government agencies governing overseas investment, economic planning and China's tight controls on foreign exchange," the report published online said.

The WSJ noted that China's economic planning agency would have to weigh the Sichuan-based company's desire to buy the company against its policies to encourage more fuel-efficient vehicles and automobile-industry consolidation. On Tuesday, General Motors said it has entered into a "memorandum of understanding with a buyer for Hummer, its premium off-road brand".

The proposed transaction, which is expected to save as many as 3,000 jobs, was announced a day after the iconic auto maker filed for bankruptcy protection.

According to the planned deal, General Motors in a statement on Tuesday said the Chinese industrial machinery group Tengzhong would acquire the rights to the premium off- road Hummer brand, along with senior management and operational team.

The privately-owned Tengzhong is not into auto manufacturing. It is a leading Chinese domestic manufacturer of road, construction and energy industry equipment.

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