The Shanghai Automotive Industry Corporation has insisted it will not stand in the way of anyone planning to continue production of Rover cars at Longbridge.
But it warned it would take legal action against anyone building vehicles based on Rover 25 or 75 designs - including MG variants - without its permission.
PricewaterhouseCoopers, MG Rover's administrators, have argued that the British carmaker still owns the rights to make MG cars.
The issue is crucial, because some potential bidders for the remains of Rover are believed to have told PwC they would only be interested in buying the operation if the tangled issue of intellectual property rights is cleared up.
SAIC says it bought the rights to the Rover 25 and Rover 75 for £67 million.
However, some of the vehicles in the MG range are souped-up versions of the basic 25 and 75.
Although SAIC does not claim it owns the right to make the vehicles, it insists no one else can make them without its permission, as it owns most of the design.
It has warned it will defend its ownership of the rights in court if it is challenged.
But it is also understood that the Chinese would be willing to negotiate with third party producers, and discuss selling them a licence to produce the vehicles.
A spokesman said: "This is not a case of SAIC wanting to be obstructive to the sale process. "What they are doing is reserving the right to defend their position and what they acquired."
Tony Lomas, joint administrator and partner at PricewaterhouseCoopers said: "We are close to completing our own due diligence on the intellectual property rights situation and are more confident now that the transaction with SAIC prior to our appointment does not preclude the businesses from continuing car and engine production, or another party from exploiting these rights, here or abroad."