China's export and import data for July 2025 showed stronger-than-expected growth amid a fragile tariff truce with the United States. Exports rose 7.2% year-on-year in U.S. dollar terms, surpassing estimates of 5.6%, while imports increased 4.1%, beating expectations of a 1% decline. The trade surplus narrowed to $98.2 billion in June from previous months. Export growth was driven by shipments to Southeast Asia, particularly ASEAN countries, which rose 16.6%, while exports to the U.S. fell 21.7%. Crude oil imports in July increased 11.5% year-on-year, reaching 47.2 million tons, with daily crude imports at 11.16 million barrels per day, slightly down from June but higher than previous years. Consumer price inflation in China remained flat year-on-year in July, defying forecasts of a decline, with a monthly increase of 0.4%, the highest since January. This stability in consumer prices reflects easing deflationary pressures amid government efforts to contain excessive competition. However, producer prices fell 3.6% year-on-year, slightly more than expected, indicating ongoing deflationary challenges at the factory gate. Overall, the data suggest a mixed economic picture with resilient external demand and inflation stability contrasting with persistent producer price deflation and fragile domestic demand.