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According to Xiao, the increased costs of materials and labor, and rising financing pressure have squeezed exporters' profits.

"Chinese exporters, especially small and medium-sized ones, should develop more value-added products to increase their ability to make profits." Simplified procedures and more professional trade services should help the exporters, he said.

In a move to encourage Chinese suppliers to use the company's online export services, Shenzhen Onetouch announced last week that it would pay manufacturers and suppliers up to 0.03 yuan for every $1 in value of export transactions handled through its service.

Zeng Zhaoyang, manager of the trade department for Guangdong Hopeful Electric Co, said overseas orders for electric fans began to pick up after the first quarter as the hot summer season approached.

"We received more orders in April. But it is hard to make big profits as prices are down, and the labor and production costs increased a lot," Zeng said.