Beijing, March 8

China exports saw their heaviest fall in nearly seven years in February, diving more than a quarter as feeble global trade offset the weaker yuan and raised pressure on Beijing to ramp up domestic demand.

The below-forecast reading is the latest data to raise fears of a 'hard landing' in China and comes days after Beijing cut its growth target for this year, while promising reforms and higher spending to boost world's number two economy.

Customs figures showed exports sank 25.4 per cent on-year to $126.1 billion last month, sharper than the 14.5 per cent economists predicted in a Bloomberg News poll and the worst performance since May 2009 at the height of the global financial crisis.

China is the world's biggest trader in goods and a key driver of international growth but its firms have been battered by weak demand from major markets as global economy stutters.

In turn, its slowing expansion has sent commodities prices plunging, battering producer economies such as Australia.

Imports fell for the 16th consecutive month, plunging 13.8 per cent to $93.6 billion, overshooting the Bloomberg forecast of a 12 per cent slide.

Analysts with ANZ Research pointed to ‘weakening global trade’ and ‘sluggish domestic demand’ as factors driving ‘disappointing’ results.

In a statement, Customs said that 'imports from and exports to major trade partners declined' in the first two months of the year, specifically noting a fall in exports of labour-intensive goods, including mechanical and electrical products and apparel.

Imports of iron ore and crude oil increased in volume while decreasing in dollar value terms, it said, while coal and steel import volumes declined.

"Prices of major imported commodities fell across the board," Customs added.

The trade data and other indications 'suggest that growth momentum weakened further in January-February', wrote Nomura Analyst Zhao Yang.

Beijing's fiscal stimulus plans 'cannot fully offset headwinds from slowing real estate and manufacturing investment', he added.

The sharp drop in overseas shipments — the eighth straight fall — came despite ongoing weakness in yuan, which was devalued in August and January, fuelling suspicions Beijing is trying to make its exports cheaper, which it denies.