As a definite effect of the continuing sovereign debt crisis in the eurozone, coupled with the fiscal weakness also happening in the United States, China had braced itself for a less than favorable performance of its exports during the first month of the year.

Chinese Commerce Minister Chen Deming said exports statistics could have likely dropped in January as a resulting consequence of China's slowed down foreign trade performance in the second half of 2011.

"Exports in January this year cannot make us optimistic and are expected to have negative growth year-on-year due to the Chinese New Year and other factors," he said during an interview with Bloomberg News. His comments were later published on the commerce ministry's Web site.

"Due to factors such as the Spring Festival, it may have fallen from a year ago," Mr Chen added.

Official export trade statistics are scheduled for release today. The general forecast for China's annual growth is 4.8 per cent in January, versus December's 13.4 per cent.

Analysts are worried the world's second-largest economy is geared towards a hard landing, albeit an improved December manufacturing activity despite weaker global demand for exports.

The slowing export growth could jeopardiSe China's economy later this year. The trade slowdown may also push the federal government to enact monetary loosening policies.

"Chinese trading companies, particularly small and micro businesses, have come under growing pressure," Mr Chen said.

"We will keep the overall stability of our export and import policies, including tax rebates, and maintain the stability of the yuan's exchange rate and relevant policies of processing trade," the commerce minister said in an English translation from the Ministry of Commerce.

Any policy fine-tuning will be supportive, not discouraging, he said.

Although China's economy grew 9.2 per cent IN 2011, it was down year-on-year against the 10.4 per cent growth registered in 2010. Most forecasts for this year is between 8.0 per cent and 8.5 per cent.