The index, a key measure of factory activity in China, posted at 49.8 in January, fell below 50 for the first time since October 2012, while the new order index was 48.4, also lower from December's 49.1.

A reading above 50 indicates expansion, while a reading below 50 represents contraction.

GAC head Yu Guangzhou said the country will further balance the quality and quantity of export expansion with more policy support for competitive products and new industries, so as to improve the role of Chinese enterprises in the global value chain.

Meanwhile, the State Council, China's cabinet, has given the go ahead for GAC to release its trade data using yuan-denominated figures for this year.

Before 2014, the GAC mainly used the US dollar in its trade data releases. It started to use both the dollar and yuan to denominate all trade figures in 2014 in an effort to promote the expanded use of yuan.