(Yicai Global) Dec. 5 -- German carmaker Daimler, which owns the Mercedes-Benz brand, has refused to pass comment on rumors that it wants greater control over its Chinese joint venture.

The firm is satisfied with its current setup in China, it said in a statement yesterday, responding to reports from Bloomberg, Reuters and other media outlets that cited sources as saying Daimler had expressed interest in upping up its stake in the China unit to at least 65 percent from 49 percent.

A representative from BAIC Motor, Daimler's local partner, denied the reports and said it was satisfied in its current cooperation with Daimler -- a firm named Beijing Benz Automotive.

The joint venture raked in CNY22 billion (USD3.2 billion) in gross profit over the first half of this year, while revenue rose 20.4 percent to CNY70.2 billion. The figures look much brighter than BAIC's own financials, which show over the same period it lost CNY1.6 billion.

If true, the move would make Daimler the second foreign carmaker to assert greater control over its China arm since Beijing relaxed rules that forced them into setting up a local joint venture with a no more than 50 percent stake. BMW became the first when it announced two months ago that it would invest EUR3.6 billion (USD4.1 billion) to boost its stake in its China unit to 75 percent from 50 percent.

China's top economic planner, the National Development and Reform Commission, said in April that it would allow all overseas car manufacturers to operate fully independently within five years.

It plans to phase out the restrictions, allowing makers of special and new-energy vehicles free rein first, then commercial vehicle producers and finally passenger car manufacturers. It also scrapped rules limiting foreign carmakers to setting up no more than two joint ventures.

Editor: James Boynton