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Chinese manufacturers feel squeeze of stronger renminbi

Perched in front of hundreds of vibrantly coloured backpacks, each bearing the name of a famous football nation, a middle-aged woman from Fujian province worries about the squeeze on her wafer-thin margins.

Just before lunch on the opening day of the third phase of the Canton Fair – a huge trade show held in the southern Chinese city of Guangzhou, the capital of Guangdong province – Ms Lin has secured no orders.

“There are few people and they are only looking,” says Ms Lin, who has been forced to double the price of her bags to about $6 since 2011 to compensate for rising labour costs and the stronger Chinese currency.

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