China exports see biggest drop for three years

China’s imports and exports fell at a much faster than expected pace last month as weaker global demand threatens 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 numbers 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.

The news sparked a sell-off on Asian stock exchanges, with the Shanghai Stock Exchange down by 0.2%, and Hong Kong’s Hang Seng down by 1.9% towards the end of the trading day.