As all know, around 70 percent of the global toys come from China, while Guangdong contributes about 80 percent of national export. Toy production currently thrives in Guangdong, where high-tech electronic and electrical toys stand out. Fully loaded with toys, container trucks frequently head for port, and then containers are then shipped to every corner of the world.

Splendid toy business of Guangdong owes firstly to the opening-up policy. On the other hand, it is in close relationship with foreign investment, and at the same time, a mutual fruits created during the shift of Hong Kong’s toy industry. In the grand 10-year anniversary of Hong Kong’s returning to motherland, we cannot help to sing a paean to Hong Kong’s makers and merchants.

Faith in reform

In 1979, shortly after the opening-up policy was actualized, lots of overseas people are not acquainted with or are doubtful of the reform. People of foresight in Hong Kong’s toy circle, such as Tim Lam and Dennis Ting, took initiative to establish business in Guangdong with human resources, technique, funds and information of global market. When Shenzhen is set as a city in the same year, lots of HK’s investors took the lead in providing equipments and cooperate with new enterprises in Shenzhen in compensation trade of toy. New pattern of toy business in Guangdong was then opened.

Upstream

Asia was strike by financial crisis from the second half of 1997 to 1999, domestic China and HK suffering greatly during those days. International media and some American scholars advocated that, foreign companies in China should “move to ASEAN”. However, we did not see any HK-invested companies “moving out”.

Advantage in industrial cluster and scale

According to undercount, over 3,000 Hong Kong toy companies flourish in Guangdong province, which are mainly gathering around Pearl River Delta. Gathering facilitates absorbing labor resources, allocation of production facilities and materials and getting support of local government. Meanwhile, it would be easy to contact with foreign clients and develop high-tech products that meet with consumers’ demand. Therefore, production scale is expanded rapidly. During the days when Hong Kong’s production line had not shift to inland, for example, in the most thriving year of 1984, totally 2,383 factories existed, coming with 56,054 employees. Presently, only Jetta group has a population of 35,000, and there are another 4 Hong Kong-invested toy companies in Guangdong that have over 10,000 employees. Cluster can be translated into greater production scale and stronger competitive edge.

Main force for formulation of CARE Process

ICTI CARE Process is a critical document about social responsibility of global toy business. It is firstly advocated and urged by Hong Kong merchants, and after the first drift was completed, an expert working group had played an important role for the finished version. In fact, Hong Kong Toys Council did practical work, setting up a professional group of 40 experts, including 26 Hong Kongese. ICTI CARE Process has boosted the development of domestic toy companies on both economy and culture.

Mutual benefit by joint effort

Before the opening-up policy is established, Guangdong saw scattered low-end toy production only in Guangzhou, Chaozhou-Shantou and Foshan. Investment of Hong Kong provides valuable opportunity for domestic toy makers to learn production technique and management experience and achieve leap-and-bounce development. At the same time, domestic advantages on policy and cost also bring in rich profit for Hong Kong investors, who are able to enlarge production scale continually. A situation with reciprocal practice and mutual benefit comes into being.

Review is for commemoration. It is also encouragement for further resplendence of the two sides.