China's exports surged 48.5 per cent in May on a year-on-year basis but raised concerns about the debt problem in Europe and the fixed value of the yuan.

Exports from China to Europe - its largest export market - grew 49 per cent y-o-y compared to 28 per cent in April. Some economists say this export rise would be temporary as the continent is facing tough issues of debt.

Others warned of "worsening imbalances" in the global economy which have led to recent diplomatic tussles with China's trading partners such as the US, who say the yuan is deliberately undervalued.

The US has long been pressing Beijing to un-peg its currency from the dollar. However, China considers it an internal matter and has rejected the 'politicisation' of the exchange rate issue.

Year-on-year imports to China were also up 49.3 per cent, resulting in an overall trade surplus of $19.5bn (£13.3bn), a nearly ten-fold rise over $1.68bn in April this year.