China expects its exports performance to improve after first quarter data showed signs of recovery, with more policies in the pipeline to support sales abroad, the commerce ministry said Wednesday.

"We are confident that (exports) will further improve on the basis of the gradual recovery seen in the first quarter," commerce ministry spokesman Yao Jian told reporters.

Exports in March fell by 17.1 percent on year, the fifth straight month of declines, according to official figures released last week.

But the drop last month narrowed from a 25.7-percent year-on-year dive seen in February, the worst slump in more than a decade.

Yao said foreign demand contraction, insufficient trade financing and rising protectionism amid the global economic crisis were the main reasons for China's export fall.

The government will support small and medium-sized companies to explore foreign markets, including helping them build marketing networks and promoting their brands abroad, Yao said.

Chinese banks and insurers will also be encouraged to provide more trade financing and insurance services to help the export of heavy manufacturing equipment, he added.

In addition, China will also import more advanced technology, environment-friendly products, key components and primary products to further balance its foreign trade.

earlier related report

Foreign direct investment falls again in China

Foreign direct investment in China fell 9.5 percent in March for the sixth straight monthly fall, but there were some signs the worst could be over, the government said Wednesday.

Foreign firms invested 8.4 billion dollars in the country last month, a decline of 9.5 percent year-on-year, the commerce ministry said.

The investment in March was the highest since June last year, when foreign firms pumped in 9.6 billion dollars, according to the ministry's website. The ministry had earlier said it was the highest since October.

The drop in March also narrowed from year-on-year falls in January and February, which saw declines of 32.7 percent and 15.8 percent respectively.

"The decline in actual foreign investment is showing a trend of narrowing," a commerce ministry statement said.

The March fall saw foreign direct investment in China plunge 20.6 percent in the first quarter from the same period last year to 21.8 billion dollars, it said.

Factors affecting China's attractiveness this year include policies in some nations to encourage firms to invest back at home amid the global economic crisis, ministry spokesman Yao Jian told reporters.

Fiercer competition among developing countries for foreign capital was another reason, he said.

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