China Exports See Biggest Drop for Three Years

China’s imports and exports fell more sharply than expected last month as weaker global demand threatened the recovery prospects of the world’s second-largest economy.

Official figures show that exports fell by 14.5% in July compared with a year earlier, while imports dropped 12.4%.

The grim trade figures reinforce concerns that the country’s economic growth could slow further this year.

It will increase pressure on Beijing to help boost the post-pandemic recovery.

The weakest export figures since February 2020 suggest that the rising cost of living and more expensive borrowing in other parts of the world are having an effect on China’s post-pandemic recovery, by reducing demand for its goods.

Within China demand has also been lower than expected, with economic activity failing to bounce back after three years of stringent lockdowns and restrictions to limit the spread of coronavirus.

Exports to the US, one of China’s biggest buyers, fell 23.1% year-on-year.

The European Union also bought 20.6% less from China.

The EU and China have been involved in a row over semiconductor chips, leading to the Chinese government tightening control over exports of some of the key materials used to make the computer chips.