Forecasts were predicting a 4.1% fall in exports, but a weakening currency may have boosted the lagging sector.
Imports also beat expectations in yuan-dominated terms to only fall 4%, compared to forecasts of a 7.9% slump.
The
jump in exports was the first rise since June last year as the sector
has been battered by slowing demand and slumping commodity prices.
For the year, exports fell 1.8%, while imports tumbled 13.2% from 2014.
China's
customs spokesman Huang Songping said at a news conference in Beijing
that the country's exports fell last year due to weak external demand.
Trade
figures in US dollar-denominated terms came out later in the day and
were also better-than-expected. Exports fell 1.4%, compared to forecasts
of an 8% fall, while imports declined 7.6% against expectations of an
11.5% decline.
Weaker yuan
The
country's central bank had been aggressively weakening the yuan
guidance rate -the rate the bank fixes for the currency on a daily basis
- last week in an attempt to boost the sector.
But
the depreciation of the yuan sparked fears that other countries in the
region would also start to devalue their currencies to compete with
China on exports and that rattled global markets.
This week, it
has set the yuan rate steady in attempt to calm volatility in equity
markets and soothe fears that China's economy may be slowing faster than
anticipated.
The world's second largest economy is already
expected to have grown at its slowest pace in a quarter of a century
last year, with Beijing targeting 7% growth.
But many economists
have warned that the Asian giant may undershoot that target as key
sectors such as exports, manufacturing, property and consumption
struggle to gain momentum.
However, Wednesday's closely watched
better-than-expected figures could go a long way to ease fears about the
Chinese economy at a time when attention is focused on how authorities
are handling the market volatility.
The benchmark Shanghai Composite index was up 0.7% to 3,044.52 after the data was released.
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