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Higher safety standards overseas for Chinese toy makers

08-29-2011 12:54 BJT

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Christmas is months away, but foreign customers have started to place orders for Chinese toys. However, things are different this year from previous times.

As toy safety threshold has been raised in European Union and the U.S., Chinese toy makers are under more pressure from rising costs of raw materials and labor.XXX takes a look at the situation in Shantou city of Guangzhou, to see how businesses are doing there.

It's traditionally the peak time for European and US customers to place orders in China's toy industry. But as the new safety measures are in place, Chinese toy makers are becoming more cautious to accept those foreign orders.

Director Zhang Ke said, "We are cautious. In the meantime, we keep a close eye on customers' need and changed in the market. So our orders fell by about 30 percent."

Chinese toy makers are under more pressure from rising costs of raw materials and labor.

Since July 20th, toy makers have to comply with stricter EU regulations, which now have 57 requirements compared with 16 previously.

Some of the requirements ban 19 types of heavy metals in toy manufacturing, in addition to 66 flavor additives.

The US has also taken a similar move. It requires toy makers to limit lead content from toy products to less than 100 ppm.

All these combined will increase manufacturing costs from five to 15 percent.

Director Guo Zhuocai said, "Costs will rise more than five percent.Now that costs of raw materials and labor have increased, companies think it's better to accept less orders than to suffer losses."

Chinese toy makers account for nearly 70 percent of the global market, with the majority of exports going to the EU and the U.S..

Chinese toy makers are under more pressure from rising costs of raw materials and labor.

Editor:Li Wanran |Source: CNTV.CN

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