The steep fall in exports is prompting the Chinese government to accelerate the free trade area (FTA) strategy to help local manufacturers reduce export costs and also fend¹ off trade protectionism measures.

Chinese exports fell for the sixth month in a row in April, alarming officials who were expecting the decline to ease further last month.

Thanks to the still blurred² economic situation in the US and Europe, China's major two export destinations, analysts³ are not optimistic and feel that the hard times are far from over for Chinese exports.

The Ministry⁴ of Commerce, for the first time, admitted in its website that the "situation is severe" and China will be "actively⁵ taking measures to boost exports in the months ahead".

"The FTA strategy will be given top priority," it said.

Currently China has eight FTAs with 16 nations and regions worldwide, with bilateral⁶ trade accounting⁷ for one-fifth of the Chinese total in 2008.

In 2004, China and ASEAN signed the first FTA.

But since late 2008, China seems to be hastening the process. It has conducted FTA talks with countries like Chile, Costa Rica, Norway and Pakistan.

The latest FTA to have been signed is the one with Peru inked in late April. The two sides signed a package of deals including commodity, service trades and investments. The deal is noteworthy taking only a year to conclude.