China's imports and exports each declined more than expected in July as demand continues to weaken in the nation of 1.4 billion people.
Imports fell 12.4% in July from a year earlier, according to customs data. At the same time, China’s exports contracted 14.5% year-over-year during the month.
The trade data is the latest sign of a pronounced slowdown in the world's second biggest economy and puts pressure on political leaders in Beijing to introduce stimulus measures to reignite growth.
In recent weeks, data has pointed to a downturn in key economic sectors such as construction, manufacturing, foreign direct investment, and industrial profits.
July’s export decline was the fastest since the onset of the Covid-19 pandemic in 2020 and the drop in imports was the biggest since January of this year when the country was still labouring under pandemic restrictions.
China’s yuan currency fell to a three-week low and Asian stocks declined on news of the weak trade data.
Crude oil shipments to China, which is the world's biggest oil importer, fell 18.8% in July from June and reached their lowest daily rate since January of this year.
Exports to the U.S., which is the top destination for Chinese goods, declined 23.1% year-over-year in July, while shipments to the European Union fell 20.6%.
Officials in Beijing said last week that stimulus measures would likely be forthcoming and target consumer consumption in the automotive, real estate and services sectors.
