Chinese exports slumped by more than a quarter last month, as the country felt the full force of a collapse global demand that more than offset a sharp rise in domestic investment.

Economists said the headline 25.7 per cent decline in exports for February, which was worse than expected, probably masked a steeper underlying fall given the shorter number of working days in February 2008. Until last month, the rate of decline in exports had been slower than for other big Asian economies.

“Weakness in final demand has fed along the Asian supply chain and is only now having its full impact on China,” said Mark Williams at Capital Economics. If the rapid deterioration in exports continues, the government is likely to face louder calls from Chinese companies to depreciate the renminbi.