While acknowledging the impediments posed by burgeoning inflation, the World Bank in its quarterly estimate of Chinese economic conditions raised its growth forecast of the giant Asian economy from previous 9 per cent to a 9.5 per cent.

The rosy forecast did not come without its fare share of cautionary comments from World Bank economist Louis Kujis who called for tighter monetary controls and the need for a stronger currency to keep the current momentum going.

"China's macro stance needs to be tighter than it was in 2009. Inflation will not be taking off in a major way, but we do observe other macroeconomic risks that are in part an outcome of the stimulus", said the Beijing based World Bank analyst.

As the world lays its hopes at Beijing's doorstep to help lead it out of the current economic slump, Chinese Premier Wen Jiabao while sounding a warning over the current inflation level claimed the Chinese economy was in overall a healthy position with no concrete causes to doubt the present optimism.

Meanwhile, the American lawmakers are decrying the currency controls in China that are keeping the Yuan undervalued and handing Chinese exporters an unfair advantage.