China's imports and exports are likely to continue their upward trend this year but pressure will remain due to external uncertainties, a report said Thursday.

Foreign trade will be in a better position thanks to improving structure and efficiency and more growth momentum, according to a report by the Ministry of Commerce.

The sound fundamentals have remained unchanged and local companies still have advantages in global trade, said the report.

Boosted by a pickup in external demand and a stable domestic economy, China's trade with the rest of the world grew strongly in the first quarter.

Exports in yuan-denominated terms rose 14.8 percent year on year, while imports jumped 31.1 percent. The trade surplus dropped 35.7 percent.

The report warned of a still grim trade situation and called for continued efforts to ensure steady development, citing a shaky recovery of external demand, more competition and trade frictions.