General Motors GM.UL does not expect a sharp slowdown in demand in China's auto market from potential changes in government policy, its China chief said on Thursday.

The Chinese government is fully aware of the danger of a sharp reduction in market demand if policies are changed unilaterally without properly understanding market implications, said Kevin Wale, president and managing director, GM China.

We are confident that the policies that the government will follow will ensure that there is not a sharp decline in general, he told reporters at a news conference.

But Wale added that he expected the government to make some modifications to policy to ensure a steady pace of growth next year.

GM said in July that it expected more than 10 percent growth in its vehicle sales this year in China, its second-biggest market after the United States.

(US$1=6.832 Yuan)

General motors China