In January-May, China's fixed asset investment grew 30 percent, while consumption grew less than 15 percent. China's trade surplus amounted to 46.8 billion U.S, dollars.

If this trend continues, China's trade surplus this year is expected to surpass last year's record 101.2 billion dollars, economists said.

Wang said China's macro economic regulation and control should combine the resolve of short-term problems with the realization of long-term targets so as to stimulate the transformation of the growth pattern and realize the goal of sustained and fast development of the nation's economy.

As for the central bank's raise of the benchmark lending rates by 27 basis points in late April and the recent hike of reserve ratio for commercial banks by 0.5 percentage points, Wang believed these measures were not enough to curb the overheated lending.

He suggested a more relaxed and flexible interest rate and exchange rate policy in a bid to control credit and achieve a balanced foreign trade.

Meanwhile, he noted, the policy of tax rebate, which has been in place since 1998, should be adjusted.

He pointed out the root for China's economy to experience sharp ups and downs over the past years lies in the country's administrative managing system, which spurs local officials to seek after higher economic growth to get promoted.

Reforming China's administrative managing system and establishing scientific system to select officials is the fundamental way to solve China's deep-rooted economic problems, he said.

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