China Hit By Massive Drop In Exports.

Chinese exports slumped 25.7 percent in February, much higher than analysts had expected, as the global economic crisis began to take its full toll on the country's export sector. China's exports have decreased for four months in a row, but until February the rate of decline had been much slower than seen in other Asian countries with large export sectors.

China's trade surplus in February totaled $4.84 billion, the lowest since $2.5 billion in February 2006 and a sharp drop from $39.1 billion in January. Trade in key commodities - including crude oil, coal and iron ore - reflected plummeting world-wide demand for metals and energy resources as well as a slowing domestic Chinese economy. The latest data could hurt China's first-quarter gross domestic product as exports have been a key growth driver.

China's imports fell by 24.1 percent, less than January's 43 percent plunge but still a blow to its trading partners, especially other Asian nations that supply its export industries with components and raw materials. The commerce minister warned Tuesday the slump is unlikely to end soon, saying trade will be a 'grim picture' in coming months.