China warns carmakers on overseas deals - paper

SHANGHAI, March 2 (Reuters) - The Chinese government has cautioned automakers against acquiring assets from struggling overseas rivals, the Shanghai Securities News reported on Monday.

Chinese firms, which have been repeatedly approached by troubled U.S. automakers seeking to sell assets, are not strong enough to cooperate with those global players, the newspaper said, citing Chen Bing, head of the industry coordination department of the National Development & Reform Commission, the top planning agency.

"Chinese car makers are not strong enough to participate in cooperation with big global companies," the newspaper quoted him as saying.

So far, Chinese car manufacturers including Geely Automobile Holdings Ltd (0175.HK), Chongqing Changan Automobile Co (000625.SZ)(200625.SZ), and Chery Automobile Co have all received offers to buy assets from abroad, the newspaper said.

Chinese engine maker Weichai Power Co (2338.HK)(000338.SZ) said last month it had contacts in December with General Motors' GM.N Strasbourg unit on possible cooperation and was buying assets of a French engine maker.

Chery has held talks with several European auto brands, including Ford Motor's (F.N) Volvo car brand, and is interested in acquisition, a source with direct knowledge of the matter told Reuters last month.

(Reporting by Samuel Shen, Editing by Jacqueline Wong)