China's Toy Factories Closing Down

CHAN:
With the global financial crisis, demand for Chinese exports is decreasing, and China's toy factories are shutting down fast.

China is the biggest exporter of toys in the world. But according to China's General Administration of Customs, more than 52 percent of toy exporters went out of business in the first seven months of this year.

Several safety recalls have raised red flags on toys made in China... so global trade protection and higher safety-control standards are also affecting the demand for Chinese toys.

The customs agency also blames low profit margin, small capital, appreciation of Chinese currency, and rising production costs for the factory closures.

Chong Yik Toy Company in Shenzhen, in Guangdong Province, is just one example of many. It went bankrupt earlier this week, leaving 900 workers jobless.

Thousands of unemployed workers were protesting outside closed toy factories in Guangdong Province just last week.

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[scottieman2]

Oh no. Chinese are out of work. Now they know how America feels.

[Spadadiforza]

And Chinese economic bubble is beginning to burst.

[nguyendynasty]

so the toy factories goes bankrupt and has not money and in dept...and they are protesting because they got fired??

[yusafzai08]

Chinese Han people are like a virus....they are consuming global resources like wildfire and destroying the earths environment. I dont blame the Uighurs for not wanting the Virus of Hans in their region.

[JustMakingComments]

Hope each of them have enough savings to ride out possibly more unfortunate events.