Official figures show that China's economy grew at an annual rate of 11.1% in the first quarter of 2007.
The growth in the first three months of the year is likely to have been boosted by a huge trade surplus and massive investment in infrastructure.
Growth in the world's fourth-largest economy reached 10.7% in 2006 and was 10.4% in the three months to December.
The Chinese government has set a growth target of 8% for 2007 as a whole. Analysts had expected the economy to pick up speed in the first quarter, with most forecasts at around 11%.
Announcing the figures, the National Bureau of Statistics noted a whole series of concerns about the pace of economic growth which continues to run ahead despite government efforts to put the country on a more sustainable path.
'Outstanding problems existing in economic development are an imbalanced balance of payments, excessive liquidity, an irrational economic structure and high pressure on energy conservation and pollutant emissions reduction,' a spokesman said.
The Chinese stock markets had slumped 4.5% in anticipation of the figures, which will lead to fears of higher interest rates.
