China announced Thursday it has canceled seven joint ventures with foreign companies as part of a tough new policy to dampen economic growth and bring its overheated economy under control.

Cancellation of the projects marks Beijing's first clear signal to foreign investors that they also will feel the effects of China's efforts to slam the brakes on the economy as inflation - fueled by recent massive investment in construction - has soared to more than 20 percent.In addition, the government has ruled out further capital construction projects, including joint ventures with foreign partners, for several years, the official China Daily newspaper said.