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Andy Mok, research fellow at the Center for China and Globalization, an independent think tank in Beijing, believes such legislation is vital if China is to advance to the next stage of its development.

An online video-featured signing meeting for foreign-funded projects was held in Jinan, capital of East China's Shandong province on Tuesday.

Analysts said the decline could be even deeper in the whole year, considering a high comparative base last December due to the rush to take advantage of a purchase tax discount.

And when it comes to punishment, Li said, the logistics companies should take most of the responsibility rather than the drivers, who are at their bosses' beck and call. Only when the companies stop their cutthroat competition will a healthy and fair environment be established, he added.

Analysts expect a sharp economic contraction in the second quarter. Unemployment is expected to spike and consumers are expected to reduce spending. Consumer spending represents about 70 percent of the US economy. A sharp reduction in spending and demand could lead to a downward spiral.