China’s manufacturers have cut prices this year as the domestic economy has weakened, potentially bringing some relief to western gift shoppers this Christmas.
Slow economic activity and a downturn in the country’s heavily indebted property sector have depressed commodity prices and reduced input costs.
Chinese producers have also regained some of the cost advantages they lost to cheaper locations over the past decade, thanks to a depreciation in the renminbi, which hit a 16-year low against the dollar in September.
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