On April 2, a Chinese financial newspaper 21st Century China Business Herald published a story titled “China toy industry meets an inflection point?”The story describes declines to the toy export industry here.
In the story, Luo Yangpeng, vice-major of Shantou City admitted the growth of Shantou toy exportation would decline in 2008 because of multiple factors.
The story reported a decline of Guangdong toy exportation for February, falling by 40.3%. It was 20.1% lower than a year before. It hit a new low after a series of toys recalls in 2007.
With a combination of appreciation of the RMB, growth of cost and more strict standards for toy exportation, China toy industry is in trouble.
Linweji, a manager of Huawei Toys which is a big toy plant in Chenghai, Shantou, said foreign businessmen were unwilling to change the trading currency because of dollar devaluation. He complained that profits turned to losses after a few months as RMB had been rising.
Facing this situation, Shantou toy industry would improve its products’ quality by establishing a 10-million-yuan-worthy inspection center and would develop its new markets in Africa and Oceania, said Luo Yangpeng.