Nearly 1,000 toy exporters shut down in south China in 2008
Product recalls, rising production costs and the global financial crisis caused almost 1,000 Chinese toy exporters in just one province to shut down last year.
According to data released Saturday by Huangpu Customs, 922 toy exporters in Guangdong Province closed operations in 2008.
That leaves the area with 2,167 toy exporters compared with the 3,089 that were operating in late 2007.
Dongguan, the province's leading toy base, had more than 4,000 factories and some 2,000 suppliers at its peak in 2001.
The numbers began to drop about two years ago.
Rising prices for raw material and labor, along with stronger Chinese currency raised production costs by 25 percent for most companies, according to Li Zhuoming, head of the Guangdong Toy Association.
Large quality recalls by international toy giants, including Mattel Inc., also hurt the industry as Western countries raised standards to ensure toy safety.
The financial crisis compounded the situation as consumption fell and fewer orders came in.
Just in Dongguan, about 20 percent of the small toy factories closed last year, according to Huangpu Customs.
China is the world's largest producer and exporter of toys, with Guangdong alone contributing about 70 percent of the overall output.
In 2008, Guangdong exported 6.1 billion U.S. dollars worth of toys, up 3.6 percent from 2007. The growth rate for 2008, however, was 19 percentage points smaller than that in the previous year.
(Source: Xinhua News Agency)
According to data released Saturday by Huangpu Customs, 922 toy exporters in Guangdong Province closed operations in 2008.
That leaves the area with 2,167 toy exporters compared with the 3,089 that were operating in late 2007.
Dongguan, the province's leading toy base, had more than 4,000 factories and some 2,000 suppliers at its peak in 2001.
The numbers began to drop about two years ago.
Rising prices for raw material and labor, along with stronger Chinese currency raised production costs by 25 percent for most companies, according to Li Zhuoming, head of the Guangdong Toy Association.
Large quality recalls by international toy giants, including Mattel Inc., also hurt the industry as Western countries raised standards to ensure toy safety.
The financial crisis compounded the situation as consumption fell and fewer orders came in.
Just in Dongguan, about 20 percent of the small toy factories closed last year, according to Huangpu Customs.
China is the world's largest producer and exporter of toys, with Guangdong alone contributing about 70 percent of the overall output.
In 2008, Guangdong exported 6.1 billion U.S. dollars worth of toys, up 3.6 percent from 2007. The growth rate for 2008, however, was 19 percentage points smaller than that in the previous year.
(Source: Xinhua News Agency)
Off topic: Heading Chinese New Year
188 million people in China, will travel by train only, during holidays, for the chinese new year celebrations.
Many days before the 25th january, the offical start of the holidays, millions of people; began to queue at major trainstations. Most of them are factory workers, heading home, somewhere in the countryside. After 1 year hard work, they are happy, to see their family, again. As to the far distances in China, most will spend half of their vacation, on coaches or trains.
We, from HENGYI Consulting, wish all chinese people a Happy New "Ox" Year and safe traveling !
(Picture source: Xinhua News Agency)
China Import Export Rates Declined Again
China's exports and imports declined for a second consecutive month in December, reflecting weakening external and domestic demand amid the financial crisis, customs officials said Tuesday. Exports fell 2.8 percent year-on-year to US$111.16 billion, while imports fell 21.3 percent to US$72.18 billion, the General Administration of Customs (GAC) said. The rates of decline for exports and imports accelerated from November. Exports fell 2.2 percent year-on-year in November, the first monthly decline since June 2001. The previous decline, a much smaller 0.6 percent, reflected slumping U.S. demand after the tech bubble burst. In December, exports fell 3.3 percent month-on-month, while imports fell 3.6 percent. The trade surplus was US$38.98 billion, down from November's record high of US$40 billion. Total trade for 2008 was US$2.56 trillion, up 17.8 percent from 2007. The total included US$1.43 trillion in exports, up 17.2 percent, and US$1.13 trillion in imports, up 18.5 percent. The full-year trade surplus was US$295.46 billion, up 12.7 percent, GAC said. The European Union remained China's top trade partner last year, with bilateral trade of US$425.58 billion, up 19.5 percent. The growth rate, however, was lower than the 27-percent increase in 2007. Trade between China and the United States, the second-largest trade partner, rose 10.5 percent to US$333.74 billion. Japan remained China's third-largest trade partner, with bilateral trade of US$266.79 billion, up 13 percent.
(Source: Xinhua News Agency)
(Source: Xinhua News Agency)
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