The best and cheapest time to travel in China is when nobody else is. That means never in February, May or October (the national Golden Week holidays). Summer gets a bit mad with tourists and Chinese students, not to mention it's hotter than hell. August 2008 will be pure chaos with the Olympics, so you might want to avoid coming then unless you have a fondness for crowds and sports. That leaves spring (between March and April), early summer (June-July) or fall (September, November-December).
It also depends on which region you are traveling to. The east (Beijing, Shanghai) is quite different than the south (Guangzhou, Hong Kong), while West China is an entirely different climate and terrain.
On that same note, you'll find more affordable options in the west than east, though if you are looking to export Chinese merchandise, then Guangzhou and Shenzhen are where you want to stock up before heading home. Guangdong is the import-export capital of China, so you will find no end to cheap commodities.
You also might want to consider reselling Chinese antiques, which are hugely popular with westerners. Panjiayuan is the largest antiques market in Beijing (see link below) while Tianjin City outside of Beijing also has some great Sunday markets for collectables.
Feel free to browse my homepage at http://www.tomcarter.org for photos and travel articles about traveling in China. I've been everywhere, literally.
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