Forecasts were predicting a 4.1% fall in exports, but a weakening currency may have boosted the lagging sector.
Imports also beat expectations in yuan-dominated terms to only fall 4%, compared to forecasts of a 7.9% slump.
The jump in exports was the first rise since June last year as the sector has been battered by slowing demand and slumping commodity prices.
For the year, exports fell 1.8%, while imports tumbled 13.2% from 2014.
China's customs spokesman Huang Songping said at a news conference in Beijing that the country's exports fell last year due to weak external demand.
Trade figures in US dollar-denominated terms came out later in the day and were also better-than-expected. Exports fell 1.4%, compared to forecasts of an 8% fall, while imports declined 7.6% against expectations of an 11.5% decline.
The country's central bank had been aggressively weakening the yuan guidance rate -the rate the bank fixes for the currency on a daily basis - last week in an attempt to boost the sector.
But the depreciation of the yuan sparked fears that other countries in the region would also start to devalue their currencies to compete with China on exports and that rattled global markets.
This week, it has set the yuan rate steady in attempt to calm volatility in equity markets and soothe fears that China's economy may be slowing faster than anticipated.
The world's second largest economy is already expected to have grown at its slowest pace in a quarter of a century last year, with Beijing targeting 7% growth.
But many economists have warned that the Asian giant may undershoot that target as key sectors such as exports, manufacturing, property and consumption struggle to gain momentum.
However, Wednesday's closely watched better-than-expected figures could go a long way to ease fears about the Chinese economy at a time when attention is focused on how authorities are handling the market volatility.
The benchmark Shanghai Composite index was up 0.7% to 3,044.52 after the data was released.

Gary Carter, a freelance rugby reporter who works for The Sun, was found with head injuries outside Bethnal Green station at 01:00 GMT on 6 November.
The Met Police said they had been called to an altercation between two men. Mr Carter, 36, is in a critical condition in hospital.
James Flanagan 35, of Marsden Street, has been charged with grievous bodily harm.
Mr Carter's wife, Gemma Carter, tweeted "Pray for my husband #rflfamily" referencing his role within the rugby league community.
She also thanked well-wishers for their "amazing support during this very difficult time" and added "[I'm] praying @GaryCarter_1979 will pull through".
A 22-year-old man was also arrested in connection with the incident for affray towards attending paramedics. He has been bailed.

New Hibernian boss Neil Lennon takes his side to Falkirk, who finished second above the Easter Road side on goal difference last season.
Newly-promoted sides Dunfermline and Ayr United are at home to Dumbarton and Raith Rovers, respectively.
Falkirk host Hibs again in the New Year fixtures, with Raith Rovers at home to Fife rivals Dunfermline.
Scottish Championship fixtures 2016-17
Scottish League One Fixtures 2016-17
Scottish League Two Fixtures 2016-17
6 August
Dundee United v Queen of the South
Ayr United v Raith Rovers
St Mirren v Morton
Dunfermline Athletic v Dumbarton
Falkirk v Hibernian
Ayr United v Dumbarton
Dundee United v St Mirren
Dunfermline Athletic v Falkirk
Hibernian v Raith Rovers
Morton v Queen of the South
Falkirk v Hibernian
St Mirren v Morton
Dumbarton v Dundee United
Queen of the South v Ayr United
Raith Rovers v Dunfermline Athletic
All fixtures and kick-off times are subject to change.
The BBC is not responsible for any changes that may be made.
Chinese exports defied expectations in December to rise 2.3% from a year ago in yuan-denominated terms.
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A sports journalist is in a critical condition after an attack in London.
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Relegated Dundee United open their Championship campaign at home to Queen of the South on 6 August.