China's exports continued to recover in May amid improving demand in developed countries, which analysts believe will ease concerns over a slowdown and help stabilize growth.

Exports increased by 7 percent in May from a year earlier, outpacing the 0.9 percent increase in April and 6.6 percent drop in March. However, imports in May declined by 1.6 percent year-on-year, compared with the 0.8 percent growth in April and 11.3 percent slump in March, according to the General Administration of Customs.

"The May export performance implies a consolidation compared with the underlying momentum in April," Louis Kuijs, chief economist in China at Royal Bank of Scotland, said in a note.