Why have the data released this week surprised global analysts for the second time in two quarters? What domestic and external challenges does China’s economy face, and how has it managed them?

China’s humming factories threw a lifeline to an economy struggling with weak demand in the second quarter. That’s also given policymakers space to fight deflation — if they choose to do more than just hitting their growth target.

Deflation creates an illusion of strong economic growth.

China reported a better-than-expected economic growth as the world’s second largest economy took advantage of a trade truce with the US amid President Donald Trump’s tariff offensive.

Chinese state firm employee Zhang Jinming makes up for a 24% cut to his salary by delivering food for three hours every night after work and on weekends - and hopes he can avoid awkward encounters with colleagues.

Producer prices fell the most in nearly two years in June, while consumer goods prices also fell month-on-month.

Official figures showed modest growth in the second quarter as exports shifted to other countries and Beijing invested in manufacturing and infrastructure.

Analysts warn that weak demand at home and rising global trade risks will ramp up pressure on Beijing to roll out more stimulus.

China’s economy grew at a slower clip in the second quarter, as trade tensions with the U.S. rattled an economy already mired in deflation and a years-long housing downturn, raising pressure on Beijing to step up stimulus to underpin growth.

Hong Kong (CNN)The Chinese economy has slipped into deflation, with consumer prices falling for the first time in more than two years in another sign of weakening demand. The consumer price index ...