BEIJING (AFP)--Nearly half of China's toy makers closed last
year due to shrinking exports caused by the global financial
crisis, Chinese media reported Monday.
At the start of 2008, China had 8,610 companies that produced
and exported toys, but by the end of the year, that number had
declined by 49% to 4,388, the Beijing Times said, citing customs
data.
Chinese toy exports grew marginally in 2008 by 1.8% to $8.6
billion dollars, but the overall figure masked a dramatically
worsening performance toward the end of the year, according to the
paper.
In November, toy exports declined by 8.6% from the same month a
year earlier, while December marked a drop of 7.6%, the paper
said.
China's southern province of Guangdong, which produces roughly
half of the world's toys, has seen some large-scale factory
closures.
Smart Union Group Holdings (2700.HK), a Hong Kong-listed maker
of products for U.S. giants Mattel Inc. (MAT) and Walt Disney Co.
(DIS), shut down in October last year, causing 7,000 people to lose
their jobs.
China's toy industry had already been facing problems before the
economic crisis struck.
Recalls around the world of dangerous China-made toys severely
tarnished the industry's reputation, while rising labor and land
costs also caused problems.
Adding to the woes, India banned Chinese toy imports in late
January for six months, triggering trade tensions between the
world's two biggest emerging economies.
In reaction, Chinese officials are now deciding whether they
should appeal to the World Trade Organization Dispute Settlement
Body, state media said last week.
Overall, China's exports have also been hit hard by the crisis,
with shipments abroad declining for the first time in seven years
in November and December.