China’s trade declined in July, as overseas shipments dropped by 14.5% compared to the previous year, the largest dip since February 2020. Imports also fell, contracting by 12.4%, resulting in a trade surplus of USD 80.6 bln for the month. Both export and import numbers were not as favorable as economists had predicted. The central bank responded by setting the yuan at its weakest in almost a month, causing selloffs in foreign exchange markets. Meanwhile, China’s consumer and producer prices declined in July, an episode of deflation that seems temporary as officials face pressures to increase monetary and fiscal support.