中國製造

Li & Fung warns on higher China prices

Li & Fung, a Hong Kong-based consumer goods sourcing and logistics company, warned that “a new era in sourcing with higher prices” has begun, as manufacturers pass on the rising costs of both raw materials and Chinese labour to customers.

The supply chain company, which sources products for companies including Walmart and Gap of the US, and Debenhams of the UK, on Thursday reported a 27 per cent rise in profits to HK$4.28bn ($550m) for 2010.

Bruce Rockowitz, president of Li & Fung Trading, said: “The biggest topic on the minds of everyone in this business is that higher prices are really here to stay. At this point, retailers are not sure what they can pass on to consumers and what they cannot.”

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