China's commerce ministry said late Monday it imposed conditions on U.S. automaker General Motors Co.'s plan to buy part of Delphi Corp. (DPHIQ), because of concerns the deal may have a negative impact on competition in the domestic auto market.

The ministry said it was also concerned the deal will harm competition in the local auto parts market.

The ministry said that under the conditions it imposed on the deal, GM won't be allowed to set procurement conditions that benefit Delphi only.

Delphi, GM's former parts division, has relied heavily on its former parent company as it has navigated bankruptcy proceedings.

Delphi won approvals from U.S courts and the European Commission in August to sell assets to its lenders and General Motors.

-JR Wu and Juan Chen contributed to this story; Dow Jones Newswires; 8610 6588 5848; juan.chen@dowjones.com