Image: Peoples Bank of China Image: Peoples Bank of China

Over the past few decades, the Chinese economy has been one of the fastest growing in the world. That growth has been driven by manufacturing and exports. But that is now changing. The Chinese government wants to switch from a manufacturing and export-led economy to a service-focused one.

Xiao Shijun, an analyst at Guodou Securities in Beijing, said: "February’s trade data is really poor and that will exert depreciation pressure on the yuan.

"However, the recent lacklustre performance of the U.S. dollar in global markets, together with the Chinese central bank’s determination to keep the yuan relatively stable for now, means that the yuan will not weaken sharply in the near term.

"More uncertainties lie in the medium term.”