China drops double-digit growth for first time since 2005

Global shares in commodities such as copper and natural gas took a hit in early trading on Tuesday as investors tried to digest the repercussions of China’s announcement that it is to scale back its expansion plans.

China, for the first time in eight years, has cut its annual economic growth target to below eight percent in a sign that the nation can no longer supply double digit growth rates.

Premier Wen Jiabao addressed the National People’s Congress late on Monday, saying that his target for economic growth in 2012 will now be 7.5 percent instead of eight percent to ensure a more “sustainable and efficient” economy.

He also announced that China’s next step for the evolvement of the country would be to make domestic consumption the focal point of the economy. He also said China will move away from investment.