Exports of coal fell 41.6 percent to 5.11 million tonnes, while steel exports fell 52 percent to 3.47 million tonnes.

The customs agency said exports of labor-intensive products contracted more moderately than total exports, reflecting the government's moves to raise export rebates starting last July.

Garment and accessory exports fell 11 percent to US$14.62 billion, while those of toys sank 17.1 percent to US$850 million.

Grain exports plunged 46.7 percent and fertilizer exports slumped 55 percent. The government curbed exports of these products to ensure supply after major wheat-planting areas experienced the worst drought in half a century.

The customs agency said exports to the United States, European Union and Japan saw double-digit falls, but those declines were still less than the overall level.

Lu Zhengwei, analyst with Industrial Bank Co., Ltd., said the sharp drop was probably due to deteriorating conditions in emerging economies.

Looking for growth

After the 17.5 percent plunge in January, Tang said the export decline could have been expected to moderate in February, considering the low statistical base of comparison a year ago when the Lunar New Year fell two weeks later.

"It underscores the imperative to look to domestic consumption and investment for growth," he said.

Exports have long played a key part in powering the world's third-largest economy. China's gross domestic product growth slowed to 6.8 percent in the fourth quarter last year, the worst showing in seven years, as the global downturn sapped demand for Chinese goods.

Also, the yuan has risen more than 20 percent since it was unpegged from the US dollar in July 2005, which has weighed on exporters. Premier Wen Jiabao has vowed to keep the rate at an "appropriate and balanced" level.

Commerce Minister Chen Deming said on Tuesday that foreign trade faced a "grim picture" in the months ahead.

And Wen said on last Thursday in the government work report to the annual legislative meeting that China "must not slacken efforts" to promote its exports, despite the plunge in external demand and growing international protectionism.

Wen pledged measures, including fiscal and tax policies, to ease the difficulties of exporters and "ensure steady growth in foreign trade."

Zhuang said, however, there was little room to further raise export rebates, following several increases starting in 2008.

"So we should look to domestic consumption, although that will take time," he said.

(Xinhua News Agency March 11, 2009)