China reported a significant decline in exports and imports for the month of July compared to the previous year. Exports fell by 14.5%, while imports dropped by 12.4% in U.S. dollar terms.

Analysts had expected a less severe decline in both categories.

The U.S. dollar value of exports was predicted to decline by 12.5% according to a Reuters poll, while imports were expected to decrease by 5% during the same period.

China’s exports to the U.S. experienced a sharp decline of 23.1% year-on-year in July, while exports to the European Union fell by 20.6%. The Association of Southeast Asian Nations also witnessed a decline of 21.4% in Chinese exports.

Furthermore, China’s imports from Russia decreased by 8.1% in July compared to the previous year.

The slowdown in major economies, including the United States, has negatively impacted Chinese exports this year. Additionally, weak domestic demand within China has contributed to the decline.

Chinese imports of crude oil experienced a significant decline of 20.8% in July compared to the previous year. Furthermore, imports of integrated circuits fell by nearly 17%.

July’s decline in trade further adds to the existing weakness in China’s exports and imports.

On a year-to-date basis, China’s exports for the first seven months of the year declined by 5% compared to the previous year. Similarly, imports dropped by 7.6% during the same period.

However, certain higher-value export categories such as cars, refined oil, and bags saw a significant increase in the first seven months of the year.

For imports, categories like paper pulp, coal products, and edible vegetable oil witnessed significant growth in the January to July period compared to the previous year.