China's foreign trade showed continued growth in the first seven months of 2025, with total imports and exports reaching 25.7 trillion yuan ($3.6 trillion), marking a 3.5% year-on-year increase. Exports in July rose 7.2% year-on-year in US dollar terms, surpassing estimates of 5.6%, while imports increased 4.1%, also exceeding expectations. The trade surplus for June fell to $98.2 billion from previous months. Trade with ASEAN countries grew by 16.6%, while exports to the US declined by 21.7%. Despite the trade growth, China's consumer price index (CPI) remained flat year-on-year in July, defying forecasts of a decline, with monthly inflation rising 0.4%, the highest since January. However, producer prices continued to decline, with the producer price index (PPI) dropping 3.6% year-on-year in July, extending a 34-month streak of factory-gate price deflation, reflecting ongoing economic pressures from weak demand and industrial overcapacity. Additionally, food prices fell 1.6% year-on-year in July, marking the sharpest decline since February and indicating persistent demand weakness amid economic headwinds.