General Motors has stressed that Chinese company Sichuan Tengzhong Heavy Industrial Machinery is still in talks to buy Hummer.
GM officials added that the company will begin talking with regulators this week in a bid to obtain government approval for Tengzhong to buy the Hummer brand by the end of September.
It is unusual for companies to engage regulators before a formal agreement has been reached, but GM is reacting to the widespread skepticism surrounding the deal.
"We will start discussions with the Chinese government this week on the Hummer deal," said Micahel Albano, a spokesman with GM's Asia Pacific operations. "We can't sign the deal unless we have approval from the government."
Despite unnamed Chinese government sources rubbishing the proposed deal, the Ministry of Commerce, which also scrutinises all major cross-boarder equity deals by Chinese companies, has been more upbeat. It said that Tengzhong's proposed Hummer purchase was normal for a company seeking to take advantage of the global downturn.
A Tengzhong representative told teh Reuters news agency the company had been co-operating with Chinese regulators but declined to provide further information.