The Chinese authorities are likely to veto a bid for General Motors's Hummer business by a Chinese machinery company, putting 3,000 US jobs at risk.

Chinese state radio reported that the National Development and Reform Commission was unlikely to approve a bid by Sichuan Tengzhong Heavy Industrial Machinery Corporation for the maker of the gas-guzzling vehicles.

The radio station said that the commission was expected to decide that Hummer was at odds with China's conservation goals and that Tengzhong, which makes industrial vehicles such as cement mixers, lacked the right experience to run a retail car maker.

Tengzhong has signed a memorandum of understanding with GM to buy Hummer but the deal must be approved by the commission before it can go ahead.

China recent cut sales tax on cars with smaller engines and has pushed car makers to produce energy-efficient vehicles.

Tengzhong said today: "Some people may have views and speculation but the Chinese government has a process that we respect ... We will continue to engage with the appropriate authorities in an appropriate manner."

The deal with Tengzhong saved 3,000 jobs in the US. GM, which filed for bankruptcy on June 1, had decided that Hummer was not a core brand.

A small number of imported Hummers are already sold in China by entrepreneuers. Chinese buyers call the cars Han Ma, which means Bold Horse.

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