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 three-and-a-half 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 over recent months. The value of China’s exports fell 25.7 per cent year-on-year in February, exacerbating a 17.5 per cent decline in January.