The objective of this study is to analyse the status of the Chinese manufacturing sector and the impact of the 2008 financial crisis on the sector. This study will determine whether the Chinese manufacturing sector is able to survive the effects of the financial crisis and retain an attractive environment for investors in China. To examine the effects of the financial crisis on the Chinese manufacturing sector and the Chinese economy in general, this study will analyse the global economy and the origins of the financial crisis. Due to the financial crisis, people lost their jobs and reduced their levels of consumption. A low level of demand for commodities significantly affected all of the manufacturing industries in the world. Chinese economy is based on manufacturing and depends highly on its exports. The financial crisis presented a new challenge to China, as the ramifications of the crisis threatened the development of the Chinese economy. At the same time, China’s trading partners forced China to appreciate its currency (i.e., the Renminbi). Because the Renminbi exchange rate strongly affects foreign trade, a Renminbi appreciation would reduce China’s export levels. In turn, a decrease in exports would lead to increased unemployment. Therefore, the implications of a Renminbi appreciation on the Chinese manufacturing sector is a significant topic. Given the external and internal factors, determining the short-term and long-term impacts of a Renminbi appreciation on the Chinese manufacturing sector, especially during the time when the Chinese government was playing an important role in the financial crisis, is an important task. In this study, the author will study a medium-sized manufacturing company and interview its assistant general manager to determine the challenges presented by the financial crisis to this company.