BEIJING - CHINESE exports dropped 21.4 per cent year on year in June, state media reported on Friday, narrowing from May's fall of 26.4 per cent.

The latest plunge was the eighth straight monthly decline, underlining how China's crucial export sector has been hit by a fall in demand from the United States and Europe during the global economic crisis.

Imports tumbled 13.2 per cent year-on-year in June, Xinhua reported citing customs figures.

For the first six months of the year, the trade surplus was US$96.9 billion (S$141.4 billion), down 1.3 per cent compared to the same period in 2008, Xinhua said.

For June alone the trade-surplus was US$8.1 billion, AFP calculated from official data.

Since the export sector is a big employer in China, the government has been forced to come up with solutions to ward off hard times.

It unveiled a US$580 billion fiscal package late last year aimed at lifting the economy mainly through investment in large infrastructure projects. -- AFP.