China's economy grew 6.9% in second quarter

Inflation drops to 16.10% — first time in 12 months

Inflation drops to 16.10% — first time in 12 months

Likewise, retail sales growth accelerated to 11% in June from 10.7% in May, while growth was expected to ease to 10.6%.

India, on the other hand, is suffering from the impact of demonetization in the country. In most countries, that would be a breathtaking pace.

That was the same as during the first quarter of 2017 but slightly better than the 6.8% pace which economists had been anticipating.

"(The new data) is encouraging for global growth as well because China is the second largest economy on the planet", said Craig James, chief economist at Commonwealth Securities in Sydney.

But a sharp slowdown in the second half is unlikely as policymakers prepare for an important Communist Party congress later this year that will likely cement Xi's place as the most powerful leader in a generation. Housing prices have surged in the past 15 months, ever since the government decided during a period of economic weakness in early 2016 to make it much easier for families to borrow for home buying. Those steps targeted at speculators in the biggest cities appear to be paying dividends.

As reported by Bloomberg, industrial output rose by 7.6 percent from a year earlier after it was estimated it would only grow by 6.5 percent.

Fixed asset investment gained 8.6 percent on year - unchanged from the previous month and beating forecasts for 8.5 percent.

The surplus with the United States was $25.4 billion in June, up from $22.0 billion in May, official data showed last week, and its widest since October 2015, according to a Reuters calculation.

The Chinese economy grew faster than expected in the second quarter, boosted by stronger industrial output and personal consumption as well as steady investments. In that respect, there were a few clouds on China's horizon.

In terms of quarterly rates of change, GDP picked up from 1.3% to 1.7%. Chinese exports rose only 9.1 percent in the second quarter. A report on how - or if - the USA will react could come as early as this week.