China's weak July trading stokes fears over its economy

China suffered another poor month for trade in July, reinforcing fears the world’s second-largest economy is still struggling.

A 4.4% fall in exports and 12.5% drop in imports were worse than economists had expected and point to weak domestic demand and sluggish global trade.

It is just over a year since the Chinese government devalued the yuan, which artificially boosted the value of exports in the local currency.

“Signs of stronger manufacturing activity among many of China’s key trading partners has so far failed to lift export growth,” Capital Economics’ China economist Julian Evans-Pritchard said. “The country’s export growth is likely to remain subdued for some time.”

Exports to the US, China’s largest external market, fell by 2% and those to the EU, the second-largest, dropped by 3%.