According to a report carried by Dow Jones, China’s economic planning agency has said that it will revise industrial policies governing automobile manufacturers. A review of policy is seen as necessary in the face of the explosive growth of China’s auto sector in recent years.
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Sales of domestically produced passenger cars soared 50% to 1.1 million units in 2002. This year has seen an acceleration with sales in Q1 running at twice last year’s pace.
Dow Jones said that in a notice this week, the State Development and Reform Commission said the policy changes will be aimed at preventing ‘blind investment’ and ‘pernicious competition’ – the government’s terms for excess capacity and price cuts.
“The previous automotive industrial policy no longer meets the needs of our country’s automotive industry under the new trend of development,” the commission said.
