Bloomberg reported that China pared the nation economic growth target to 7.5% from an 8% goal in place since 2005, a signal that leaders are determined to reduce reliance on exports and capital spending in favor of consumption.
According to a state-of-the-nation speech that Premier Mr Wen Jiabao delivered, officials will also aim for inflation of about 4% this year unchanged from the 2011 goal. Margaret Conley reports on Bloomberg Television's "First Look" with Caroline Hyde.
China this year removed preferential treatment for foreign automakers on their Chinese plants as part of measures to prevent overcapacity in the world's largest vehicle market. Automobile sales in the Asian nation may be having their worst start in seven years as a slowing economy and record gasoline prices keep consumers away from dealerships.
Mr Li Shufu chairman of Zhejiang Geely Holding Group Co said "The industry can't just pursue capacity increase for its own sake. We need to improve the use of existing capacity and upgrade our technology."
The auto industry is among four industries listed in the government report where increases in capacity should be curbed. The other three are steelmaking, shipbuilding and cement production.
