China's economy grew 11.1 percent, up from 10.4 percent, raising concerns the country's blazing marketplace could overheat, the government said Thursday. The first-quarter increase -- the fastest growth rate since the 2006's second-quarter 11.5 rate -- sent all Asian and Western markets into negative territory, UPI reported. China's benchmark Shanghai Composite Index closed down 4.5 percent, while stocks in Japan fell 1.7 percent and those in Hong Kong dropped 2.3 percent. European stock indexes were down about 1 percent in mid-afternoon trading. U.S. stock indexes were down more than 0.5 percent in early-morning trading. "We must ... prevent the economy from changing from rather fast-paced (growth) to overheated, while also avoiding large ups and downs," Premier Wen Jiabao said in a statement. China's first-quarter trade surplus was $46.4 billion, up $23.1 billion from 2006's fourth quarter and double the year-earlier figure, the government said. Consumer prices rose 2.7 percent. Core inflation, not counting volatile food and energy prices, rose 0.9 percent. Industrial output expanded 18.3 percent.
