Record trade surpluses, buoyant retail sales and a renewed acceleration in electricity production are among many indicators pointing to continued strong growth throughout the second half of the year. Indeed, what some have called “runaway” growth in the first half was still only one percentage point higher than the average of 9.8% since economic reforms began in the late 1970s. Export price inflation has recently turned positive, but the low starting point for the level of Chinese labour costs mean that China will remain a disinflationary force in the world economy as long as trade volumes continue to grow.