HANGZHOU - China's Ministry of Commerce has approved a plan by a Chinese auto parts maker to take over American battery maker A123 Systems Inc, Zhejiang province's Department of Commerce announced on Sunday.

It means the Chinese government has given the nod to the acquisition move by Wanxiang Group Corp, based in eastern China's Zhejiang province, after the National Development and Reform Commission issued an approval in October.

Wanxiang will compete with companies including United States-based Johnson Controls Inc, Germany's Siemens and Japan's NEC to buy the bankrupt A123, which made lithium-ion batteries for electric cars.

Wanxiang said it had signed an agreement with A123 in August to invest in the moribund company. It intended to make a bid after the US company filed for bankruptcy in October.

The auction is scheduled for Dec 6.