In the HSBC survey, however, new export business decreased at its fastest pace since June 2011, remaining below 50 and indicating still harsh conditions for private firms.

"Growth remained flat on weakening new order intakes," said Qu Hongbin, chief economist for China at HSBC.

"The marginal improvement in the HSBC PMI is led by quickening production and a recovery of hiring after the Chinese New Year. But deteriorating external demand is adding more downside risks to growth in the absence of a strong comeback in domestic demand," Qu said.

He expected the central bank to step up policy easing as inflation pressures recede.

A grim trade outlook may prompt policy-makers to reduce interest rates twice in the second and third quarter, the State Information Center, a research unit under the National Development and Reform Commission, said on Tuesday.

The center also predicted China's inflation may weaken to around 3.3 percent this year, allowing the country to carry out more policy easing to support growth.

China allowed commercial banks to reduce their reserves last month, a mild easing after economic growth slowed to 8.9 percent in 2011's final quarter, the weakest in two and a half years.