Economy, Beijing | featured news

China's economy slowed less sharply than expected in the second quarter and Beijing said corralling inflation remained its top priority even though a "complex and volatile" global economy clouded the outlook.

Beijing has spent its way to a sugar high. Since last November, Beijing has spent perhaps as much as $900 billion--from its own funds as well as those of the larger state banks--to jump start its $4.3 trillion economy. No government can disburse that amount of cash without creating some economic activity.

Beijing could have used the crisis as an excuse to slow market reform. Instead, it's all systems go.