If the chinese definately wanted it then they could have done the £120M bridging loan - looks like Gordan made the right call.
When negotiations with SAIC began there was no real problems but they wanted to see what potential the company had (one of the reasons for the 75 Coupe). However it took some months for an agreement to be reached, during which time SAIC bought the 25 and 75 IR to help MG-Rover along financially.
When it became clear in early 2005 that the company was in a do-or-die situation the government were effectively brokering the deal and trying to make MG-Rover look like a very attractive proporsition and a company that given the correct investment and some time to finish their new fleet of engines and car's, one that could become profitable in he long-term.
Given the fact that SAIC had already helped them out financially, and they were not sure about the future of the company, they wanted to see the government put its money where its mouth is, initially the government (Blair and his cronies) agreed but then Brown countered it at the last minute.
If the government wernt prepared to loan the ailing company a miserly 120 million in the short term, then why should SAIC?
When the government effectively ended the deal by showing no confidence in MG-Rover, SAIC quite rightly ordered production of the 25 and 75 to be ceased, after which Honda quickly took the 45/HHR blueprints, which effectively killed the company as it only had the TATA sourced City Rover and the TF left in production and on the market.
Im thinking there could have been a more sinister objective at play in Browns mind as I don't trust him as far as I could throw him, but that's something we will never know.
MG-Rover quite clearly had a future in the long-term when one considers the amount of projects they had nearing completion that SAIC/NAC are now continuing, they just needed helping out in the short-term after BMW had arse-raped them back in 2000.
But this government only helps foreigners and immigrants etc...