The contraction of China's exports in February coincided with a rapid depreciation of the yuan, making the contraction even harder to explain and the outlook of China's exports this year even more unpredictable.

A reduction in a country's currency cuts the cost of goods it sends abroad.

The recent depreciation of the Chinese yuan, which has dropped 1.2 percent against the US dollar to 6.1247 since Feb 18, mainly reflects the Chinese central bank's intention to create two-way currency movements.