China set to announce restrictions on auto investments

China Business News has reported that the Chinese government is set to introduce new policies to restrict investment in the auto sector.

These policies have been approved by the central government and are expected to be issued in June at the earliest.

The news reported quoted sources at the National Development and Reform Commission (NDRC), which is the Chinese government’s top planning body. It said that the commission would raise the threshold of market access for new auto projects.

In addition, various other measures will be released subsequently, which would further restrict local government investment in small automakers.

The report also cited the central bank, which claimed that the total investment in the auto industry stood at 100 billion Yuan in 2005.