China's economy is holding up well during the trade war -- and the country has even managed to grab an even bigger share of global exports. 

That's according to Capital Economics, which analyzed data that show China exports have inched up despite the trade war to reach almost 12% of the world's total. Why? 

Two main factors are helping China blunt the impact of tariffs, Julian Evans-Pritchard, senior China economist at Capital Economics, said in a note.

One is a weaker yuan. China has let its currency slide lower -- the renminbi has depreciated 5% in trade-weighted terms since June last year, the economists said.

"This has encouraged exporters to lower their US dollar export prices by 2%, boosting the competitiveness of all Chinese exports to the US, not just those affected by tariffs, as well as all exports to the rest of the world," says Evans-Pritchard. 

Another reason: China is shipping US-bound exports to other Asian countries to circumvent the tariffs. China's shipments to south-east Asian countries have increased during the trade war. That's helping.