China Toy Firms are the Latest to Suffer
Hit by the world economic crisis and new product regulations, Chinese toy companies are scrambling to stay viable. From Times Online:
One after another, once-bustling factories are falling silent and closing their doors while unsold consignments of toys rot in the autumn rains.
Businessmen travelling in the southern Chinese provinces say that entire industrial estates have turned into ghost towns as thousands of migrant workers who have lost jobs head back to the countryside.
The crisis among toymakers is the first visible evidence of the country’s rapid economic slowdown. “China’s economy relies highly on external markets,” said Li Chao, spokesman for the People’s Bank of China. “Recently China’s exports have weakened as a result of weak world demand.” The government said 3,631 toy factories, or about half the industry, has closed down this year.