French media: Many Chinese export toy factories have closed down

The French “Echo” reported that two toy factories of Hong Kong Hejun Company in Dongguan, Guangdong recently closed down, resulting in 7,000 employees losing their jobs. Hejun Company relies too much on exporting toys to the United States. The weak U.S. market has made it a victim of the economic crisis in developed countries.
​
In recent years, the appreciation of the RMB, rising raw material prices, and rising labor costs have also contributed to the closure of toy factories.
​
​ ​ ​ Some small toy factories dug their own graves because they did not comply with strict quality standards and produced a large number of defective toys, which were recalled in 2007.
​
In the first seven months of 2008, more than 3,600 toy factories in China have closed down, leaving only about 3,500 toy factories still producing.
​
The crisis in this industry is mainly concentrated in Guangdong, which is the largest toy factory in the world. China is the world’s largest toy exporter, with toy sales reaching 17 billion pieces in 2007, accounting for approximately 60% of the global total.