China's crude oil output dips in June

China's crude oil output dips in June

"Everything shows that the economy is recovering and growing compared with previous year", Huang Weiping, an economics professor at Renmin University, told dpa.

The Chinese government announced last week it would change the way it calculated economic growth for the first time in 15 years, adding healthcare, tourism and the "new economy" to the overall figure.

Debt-fuelled investment in infrastructure and real estate has underpinned China's growth for years but warnings of a potential financial crisis have spurred Beijing to clamp down.

"Overall, the economy continued to show steady progress in the first half.but global instability and uncertainties are still relatively large, and the domestic long-term buildup of structural imbalances remains", said the statistics bureau in a statement. "Growth momentum has stayed pretty high and the authorities have really tamped down the pressures on the capital outflow", said Stephen Schwartz, head of Asia-Pacific sovereign ratings at Fitch.

Another aspect of concern for President Donald Trump is the fact that steel output hit a record high 73.23 million tons in June, the NSB said, while aluminium production rose 7.4% from the same period past year to 2.93 million tons.

Other data released by the statistics agency painted a rosy picture of the economy, with industrial production and fixed-asset investments both beating expectations.

Risks loom, however, over the world's second largest economy. Observers fear that surging debt could trigger a banking crisis or further slow the economy. Banks would tighten their credit policy in the near term, risking the cash flows of some borrowers. "The total debt ratio of Chinese enterprises has reached 156 percent of GDP, which might be the highest in the world".

The better-than-expected figures mean China is on track to beat the growth target of "around 6.5%" set by the country's leadership for the whole year.