>> A better than expected report card for China's economy, holding steady at 6.9% growth from April to June. Analysts figure the world's number two economy would lose momentum, but for now the usual suspects have kept things on track. Factory output and retail growing at a fast clip. Along with exports and property construction.
But as Reuters Breaking Views Pete Sweeney reports, if things change it could be out of Beijing's hands.>> And the question going forward is to what extent is the current health a result of domestic policies that can kind of overcome any external weakness or instability? Or in fact did China get a ride off of overseas things that it doesn't control if the trade picture changes.
But domestically, if housing prices start falling, or there's some other decline in business confidence, you could have a very different picture towards the end of the year. And a lot of economists do not believe that this current rosy first half is gonna be mirrored in the second half.
>> Many expect new policies later this year to stunt growth as Beijing tries to rein in a rapid run-up of debt equal to two and a half times the GDP. And while that statistic may set off alarm bells for the economy, Monday's numbers tell a different story.>> This does look like China did manage to turn a corner at least on the most dire predictions, that the Renminbi was gonna fall through the floor, that there was gonna be some sort of housing collapse or collapse in credit, or Lehman moment, you name it.
It does look like China has managed to, if not reform its way around it, at least out wait some of these pressures.>> After two quarters of expansion hitting higher than Beijing's target for the year, the government may find lower growth in the second half easier to swallow.
Officials have been working to keep the economy at a pace at least until this autumn's Communist Party Congress to choose China's next top.leaders.