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The Globe and Mail

China faces inflation, growth risks: Wen

Chinese Premier Wen Jiabao.

Alexander F. Yuan/Alexander F. Yuan/AP

Chinese Premier Wen Jiabao said China faces rising inflation risks even as its economy fights growth headwinds, hours after data showed the world's second-biggest economy grew at its slowest pace in nearly three years in the first quarter.

Mr. Wen said Beijing would continue to improve and fine-tune macroeconomic controls and policy in a timely way to deal with the challenges, but he reiterated that the government would keep its restrictions on the Chinese property market.

China's economy grew 8.1 per cent between January and March, data showed on Friday, missing analysts' forecasts and raising concerns that growth could slow further without adequate policy support.

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