China's exports grew 25 percent from a year earlier to US$187.4 billion in January, a strong start partly due to seasonal factors but also an indication of improving external conditions.
Imports also surged, by 28.8 percent to US$158.2 billion last month as domestic demand picked up, data from the General Administration of Customs showed yesterday.
In December exports rose 14.1 percent and imports 6 percent. The trade surplus in January was US$29.2 billion, up 7.7 percent.
"The increase was expected because of more working days this January," said Xue Jun, a CITIC Securities Co analyst. "But such a strong increase was more than expected, suggesting rapidly strengthening external demand which bodes well for China's trade performance this year."
Last year's Spring Festival began in January, leaving fewer work days. This year's holiday break falls entirely in February.
Moody's Analytics economist Alaistair Chan said: "Seeing the underlying trend is a little difficult. Nevertheless, the data were above expectations and seem generally positive."
Once holiday distortions are factored out, trade growth for the first three months of the year should be in high single digits, according to Goldman Sachs.
Barclays economist Chang Jian said the growing trade surplus may add near-term appreciation pressure on the Chinese currency as capital inflows continue. Chang said the yuan may strengthen by 2 percent against the dollar in 2013, assuming a moderate export recovery.
China's business with major trading partners increased in January. Shipments with the European Union, its biggest trading partner, grew 10.5 percent to US$47.1 billion. Trade with the United States rose 23.4 percent to US$43.7 billion, and with ASEAN countries the rate surged to 42.9 percent.
The Customs also said yesterday that a survey showed rising confidence among exporters. In January, 40.9 percent of respondents were pessimistic about business in the next two to three months, compared to 46.4 percent in December.
Last year as a whole, China's exports increased 7.9 percent and imports gained 4.3 percent, with net trade contributing 9.6 percent to the country's economy.
China's reliance on trade has been decreasing as the country turned toward domestic consumption to drive the economy. The total value of exports and imports accounted for 47 percent of China's economic output in 2012, a sharp fall from 2006's record 67 percent and 2011's 50 percent.
But China's reliance on trade was still relatively high compared to the US, Japan or Brazil, whose trade contributes around 30 percent of their economies.
