China's exports rose 7.2 percent year on year to US$190.73 billion in August, 2.1 percentage points higher than the 5.1 percent increase in July, the General Administration of Customs announced Sunday.
Expanding exports signals that the country's economy is in gradual recovery, said analysts.
However, imports rose by 7 percent last month, down from the 10.9 percent increase in July.
Total foreign trade rose by 7.1 percent year-on-year in August to US$352.85 billion, compared with the 7.8 percent increase in July.
Trade surplus stood at US$28.52 billion, recording the highest level this year.
The improvement in exports is related to a stable yuan and government policies, said Zhang Liqun, researcher at the Developement Research Center of the State Council.
Chinese authorities have exempted all outbound goods, transport vehicles and containers from inspection and quarantine fees from Aug. 1 to Dec. 31 this year. Meanwhile, the government has pledged consistency and stability of its macroeconomic policies. The central bank has also maintained proactive fiscal policy and stablized macroeconomic policies to help promote economic recovery.
China's gross domestic product growth slowed to 7.5 percent in the second quarter, but there were signs of recovery in recent months after policy-makers announced measures to support the economy, such as quicker railway investment and tax incentives for China's small businesses.
Improvements in overseas markets, particularly in developed economies, are expected to support China's exports in the coming months, economists say.
Domestic demand
The below-forecast import growth in August showed a "moderate payback" after July's significant gain, JPMorgan chief China economist Zhu Haibin said.
But weak imports could still be a sign of worry for the economy, signalling that domestic demand is faltering, analysts said.
"The import figure is lower than expected, indicating that the demand from the domestic market is not that strong," Ma Xiaoping, a Beijing-based economist for British bank HSBC, told AFP.
"However, there is no need to worry too much, as the effect of stimulus policies revealed earlier this year and the rebound in domestic demand will take time to realize," she added.
While the government has announced a series of support measures, it has resisted calls for major stimulus.
China's leaders have signaled they could tolerate slower growth as they seek to reform the structure of economy to make it more efficient and sustainable — with less reliance on investment, credit and exports. But they also need a stabilizing economy to avoid any sharp downturn.
In July, the State Council approved a free trade zone in Shanghai for economical and financial reform trials.
"The Shanghai free trade zone will no doubt help China curb downturn in imports and exports, stabilize its economy, stimulate the financial and shipping markets," said Zhang Shengkun, president of the Shanghai Society of Naval Architects and Ocean Engineers.
China's central bank has also reined in the appreciation of yuan to help exporters.
August's trade surplus suggested that appreciation pressure on the Chinese currency is likely to continue in the foreseeable future, ANZ economists said.
China's consumer price index (CPI), a main gauge of inflation, is expected to see slower growth in August, as shown by a survey conducted by Xinhua.
The average forecast for CPI growth last month was 2.6 percent, down from July's 2.7 percent increase.
The National Bureau of Statistics is set to release August inflation data on Monday.