BEIJING - Chinese regulators might block plans by Fuji Heavy Industries to make Subaru vehicles in China with Chery Automobile because of potential conflicts with Beijing's industry policy, the Shanghai Securities News reported on Sept 15.

Foreign automakers can only team up with two local partners, but Toyota Motor, which holds 16.5 percent of Fuji Heavy, already has two car ventures in China, the newspaper said.

Fuji Heavy and Chery had intended to build a 30 billion yen ($391 million) China plant, with initial annual capacity of 50,000 units.

But the plan might be derailed by regulators, the newspaper said.

Officials at the National Development and Reform Commission (NDRC), which will decide the fate of the Subaru-Chery tie-up, could not be reached for comment.

A Chery spokesman said he had no information about the deal, but a source told Reuters both partners are still actively communicating with the NDRC.

Chery is a major independent Chinese car maker. Toyota operates auto ventures in China in partnership with Guangzhou Automobile and the FAW Group.