The prices of China-made goods are falling again as bargaining power shifts back to overseas buyers, according to executives at Li & Fung, the world's largest trade sourcing company.
A deflationary price trend has re-established itself after 3½ years of steady increases in the so-called “China price” – a once unbeatable benchmark for global manufacturers – and coincides with double-digit falls in the country's exports during recent months.
The value of China's exports fell 25.7 per cent year on year in February, beating a 17.5 per cent decline in January.
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