The Chinese economy is showing signs of accelerating again after its slowdown from the double-digit GDP growth of the past decade.
Targeted stimulus measures were being credited by analysts for 2% growth in the second quarter - giving the country a 7.5% increase on an annual basis from the previous quarter's 7.4%.
The government said more than seven million new jobs were created in the first half of the year.
Communist leaders are trying to steer China toward growth based on domestic consumption instead of trade and investment and the unexpectedly sharp slowdown of previous quarters had raised fears of job losses.
Beijing responded with mini-stimulus measures based on higher spending on construction of railways and other public works.
Analysts say Chinese leaders are willing to accept slower growth so long as the economy generates enough new jobs to prevent unrest.
Government spokesman Sheng Laiyun told a news conference: "In the first half of the year, economic growth was stable. Employment was stable".
He added that second-quarter consumer spending rose 12.1% over a year earlier, though that was down 0.3% from the previous quarter, while investment in factories, real estate and other fixed assets rose 17.3%.
In other positive signs, foreign direct investment in China rose 0.2% in June, rebounding from a decline in May.
June bank lending grew faster than expected, suggesting growing business activity.
But despite the latest improvement in GDP growth, China's expansion is expected to cool further over the coming year.
The International Monetary Fund forecasts growth to slow to 7.3% next year and to below 7% in 2016.
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