CHINA’S ECONOMY has been through a stress test in the past six months with the trade war shredding nerves. The tensions over tariffs are not over yet. On May 29th Scott Bessent, the Treasury secretary, said that ongoing talks had “stalled” and President Donald Trump complained that China “had totally violated” the preliminary agreement to reduce duties reached between the two sides in Geneva on May 12th. Yet even as the trade war staggers on, two things are proving reassuring for China. One is that so far the economy has been resilient. Private-sector growth estimates for 2025 remain in the 4-5% range. The other is that one of China’s biggest economic nightmares seems to be ending: the savage property crunch.