The Chinese Dragon catches its breath

China's trade data for March has unveiled a mixed picture of growth in the world's second-largest economy.

Exports grew by a more-than-expected 8.9% during the month from a year earlier, indicating that global demand may be picking up.

However, imports grew by 5.3%, down from a 39.6% jump last month, raising fears about slowing domestic demand.

European markets are crucially important to China and these latest figures have allayed fears that with European economies in a fragile state Export growth would suffer.

The uncertainty in the global economy in recent years has resulted in a shift in China's growth policies.

Faced with a slowing global demand for its exports, Beijing has been trying to boost its domestic consumption in a bid to sustain its high pace of growth.

Authorities have been easing monetary policy in an attempt to spur demand.

The Chinese central bank has already reduced its reserve ratio requirement, the amount of money that banks need to hold in reserve, twice in the past few months, in a bid to boost lending in the country.

Analysts said the weak numbers may prompt the bank to take further measures.