Now Playing: 3-5-13 Marketplace Morning Report

Perhaps no state will feel the sequester more than Virginia, which relies heavily on federal spending because of its proximity to the nation's capital and its role as the home of the military industrial complex. Virginia Republican Governor Bob McDonnell shares his expectations for the months ahead. As China's National People's Congress gets underway, the current Premier of China, Wen Jiabao, has announced an ambitious 7.5 percent economic growth target for the country. And while we're talking China, incoming President Xi Jinping has proposed a new food and drug safety agency.