Chinese exports dropped 21.4 per cent year on year, in June, customs figures showed, narrowing from May's fall with analysts saying it was too early to predict a recovery for the ailing sector.

The latest plunge was the eighth straight monthly decline, but a less steep tumble than the 26.4 per cent year on year fall the previous month.

The latest drop in exports, to $95.4 billion, underlines how the country's crucial manufacturing sector has been hit by a fall in demand from the US and Europe during the global economic crisis.

Imports tumbled 13.2 per cent year-on-year in June to $87.2 billion, the customs data showed.

For the first six months of the year, the trade surplus was $96.9 billion, down 1.3 per cent compared to the same period last year.

For June alone the trade-surplus was $8.2 billion, the official data showed.

"I don't think we are seeing any signs of significant recovery in the export sector this year," said Stephen Green, an economist at Standard Chartered, speaking in Beijing.

Mr Green said it was too early to say whether the reduction in China's trade surplus would be sustained.

"A big question is whether this is a temporary or structural change in China's trade surplus," he added.