It's the second time this month the deal has been threatened following an announcement from the government last fortnight that building Hummer vehicles went against Beijing's policy of developing more energy efficient technologies.
While the announcement may seem out of character for a country not well known for its environmental policies, it is one that has been met with applause from local green groups.
But Sichuan Tengzhong Heavy Industrial Machinery disputes the claim as rumour insisting the deal will go ahead by October as planned.
“The fact that it is from a state media organisation does not mean it is government policy,” Sichuan Tengzhong Heavy Industrial Machinery said in a statement. “Some people may have views and speculation, but the Chinese government has a process that we respect.”
Whilst we're sure the arguement is bound to continue, the outcome will be very clear in four short months. Either way, we'll keep you posted.