China's export growth recorded a modest increase of 4.8% in May, much slower than 8.1% in April and missing market expectations of 6%.
The decline was mainly driven by a 12.7% drop in exports to the United States, after President Donald Trump launched a new wave of tariffs on Chinese goods.
Imports from the United States also recorded a sharp decline of 17.9% as China retaliated.
Meanwhile, China's producer price index fell 3.3% in May, beating expectations and indicating continued deflationary pressures in the manufacturing sector.
At the same time, consumer prices also recorded a fourth consecutive month of decline, reflecting weakness in domestic demand even as the central bank has implemented interest rate cuts to stimulate spending.
Economic analysts have warned that a combination of external and domestic pressures could hinder Beijing's efforts to meet its growth targets.
Persistently weak consumer demand, coupled with trade tensions, also suggests the risk of a deeper economic slowdown by the end of the year.
In a related development, representatives from China and the United States are scheduled to meet in London for a second round of talks after an initial meeting in Geneva failed to reach a comprehensive solution.
Among the main issues to be discussed are China's exports of rare earth minerals, which are critical needs in the high-tech industry and electric vehicles.
Customs data showed that rare earth exports from China rose to 5,865 tonnes in May compared to 4,785 tonnes in April, but this amount is still lower than the 6,217 tonnes recorded in the same month last year.
Global markets are now awaiting the outcome of the talks in London, which are seen as a key opportunity to ease tensions between the world's two largest economies.
