Official cautions sector on M

Chinese carmakers may consider overseas acquisitions, but they should do so cautiously, said officials and analysts.

Miao Wei, vice minister of of industry and information technology, said he hopes to see local carmakers making overseas acquisitions as the country tries to develop a globally competitive auto industry, reported Bloomberg yesterday.

Domestic automakers may be considering overseas investments, said Miao, the former president of China's third-largest carmaker Dongfeng Motor Corp, refusing to elaborate further.