In an unexpected turn, China's exports is soaring high after almost six months of faltering. However, this may be because of the weakening currency rather than an improved state of the economy.

Expert's forecasts of China's export figures were bleak; a 4.1 percent fall in exports was predicted by many. However, China's exports increased by 2.3 percent in December in terms of Yuan domination. Imports also defied expectations as it fell 4 percent compared to its expected slump of 7.9 percent in terms of Yuan.

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The increase in exports is the first since June last year. China has been struggling with decreased demand and a slump in commodity prices.

Meanwhile, exports fell by 1.8 percent for the whole year with imports falling by 13.2 percent from 2014.

In terms of the US dollar, exports and imports also turned out better than expected. Exports fell only by 1.4 percent compared to the expected 8 percent. On the other hand, imports decreased by 7.6 percent against predictions of 11.5 percent.

In an attempt to boost the sector, China's central bank has been depreciating the Yuan guidance rate; this is the rate that the bank establishes on a daily basis. This strategy, however, has not been welcomed by some experts who say it could lead to other nations weakening their own currencies to compete with China in terms of exports. In turn, this can unsettle the global market.

This week, the Yuan rate remained steady as the country attempts to calm the volatility in equity markets. Authorities are also hoping to calm the fears of many that the country's economy is fast declining.

However, the better-than-expected export and import figures announced on Wednesday will go a long way to calm the fears of many.

TagsChina exports and imports, Chinese exports