China Watch

Some analysts also predicted that policymakers would let China8217;s currency appreciate at a faster pace. A stronger yuan could help reduce the nation8217;s massive trade surplus by making Chinese goods more expensive for overseas buyers.

In announcing the first-quarter economic statistics, a spokesman for the National Bureau of Statistics acknowledged the economy8217;s increased risk of overheating, a term that describes conditions of excessive demand or investment that can generate inflation or 8216;8216;bubbles8217;8217; in property and equity markets.

After the release of the data, China8217;s State Council, or cabinet, said that it would strengthen efforts to curb new investments and steer a course toward sound growth.

8216;8216;An overheated economy may not cause big problems in the short term, but it is unsustainable and harmful for stable development,8217;8217; said Zuo Xiaolei, chief economist at China Galaxy Securities Co. Ltd in Beijing.