China is trying its level best to prevent an increase in politically dangerous unemployment, by buying a rebound in economic growth with a flood of government spending and bank loans. Thus, it is also making an earnest effort to bring back hopes of some ease amidst the global financial downturn.

On Thursday, the government had announced that global financial markets experienced a boost from the second-quarter growth, accelerated by 7.9 percent, from a year earlier. However, Beijing warned that a full-fledged recovery is not firmly established.

According to the National Bureau of Statistics, the first quarter saw the economy growing by 6.1% and analysts hold a viewpoint that full-year growth should easily reach the government's 8 percent target.

This clearly indicated that economy depended on Beijing's $586 billion (4 trillion yuan) stimulus effort, which was released, following the collapse in demand for Chinese exports. It led to loss of tens of millions of factory jobs and raised the specter of unrest.

Kenneth Lieberthal, a China scholar at the Brookings Institution in Washington said: "A major motivator for this stimulus is to maintain job growth and to prevent massive disorder. It seems to be succeeding."

If the economy recovers in China, then it might lead to ignition of a global revival. But this might only be possible if it leads to increased purchases of American and European factory equipment, Asian industrial components, as well as Australian iron ore and raw materials.

Furthermore, with a stronger economy, the Chinese companies can also think of moving ahead with foreign acquisitions - like Beijing Automotive Industries Corp.'s bid to acquire General Motors Corp.'s Opel division.

Jay Bryson, global economist at Wells Fargo Securities said: "The U. S. is probably going to get more exports going to Asia. So that's good."

It should be noted that markets from Tokyo to Singapore buoyed due to the surge.

Alan Landau, Hong Kong-based president of Marco Polo Pure Asset Management said: "This should give people confidence that China's economy is on strong footing and that there are a lot better days ahead."

However, the analysts warned that China alone cannot drive a rebound.

"The bulk of Chinese imports are raw materials from other developing economies, so the direct benefits to the United States and Europe might be limited," said one analyst.