Sept. 8 (Bloomberg) -- China’s Ministry of Commerce “knocked back” Sichuan Tengzhong Heavy Industrial Machinery Co.’s application to acquire General Motors Corp.’s Hummer unit, the Beijing Youth Daily reported today, citing an unidentified official with the government agency.

The ministry asked for more details about whether Tengzhong is buying Hummer’s patents in addition to purchasing the brand, the newspaper said. A public relations firm representing Tengzhong and a General Motors spokesman declined to comment yesterday, according to the report.

Tengzhong signed a memorandum of understanding for the sale of Hummer with GM in June as the Detroit-based company works to dispose half its brands. GM and Tengzhong, a privately owned maker of special-use vehicles and construction machinery, expect to complete the purchase in the third quarter, pending closing conditions and regulatory approvals, they said in a June 2 statement.

GM has said it is working with both governments to make sure they understand the deal and the benefits to all parties.

China is also encouraging automakers to build more fuel- efficient cars, including hybrids, to help win sales overseas and to reduce oil imports and pollution at home. The 3.7-liter Hummer H3T gets 14 miles to the gallon in city driving, according to the U.S. Environmental Protection Agency.

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Last Updated: September 7, 2009 22:34 EDT