This summer, China’s products that have been widely known for its “low price and high quality” is thrown a wet blanket on. A great amount of products exported to the U.S. is recalled and all trends to get fierce during the summer.

Last issue, TOY INDSUTRY has a special coverage on the recall case of 1.5 million wooden toys and probes into the controlling of lead. Facing the harsh trial on the fascia of “made in China”, how can we break from predicament and promote sustainable development of the industry?

Summer storm

All these begin from the recall on June 13, when CPSC and RC2 announced to recall 1.5 million of wooden railway toys due to lead hazard. The toys are made in Dongguan, Guangdong. Afterwards, a great deal of Mattel’s toys is recalled by CPSC on August 2 and August 14.

By the year of 2006, China’s toys had made up 87 percent of imported toys of U.S. China’s toy makers are not strange to routine market supervision and toy recall of CPSC. But announced in such a frequent way and great amount, recalls do astound the industry. August 11, news startled all. Cheung Shu-hung, vice president of Lee Der Toys, the maker for the 967,000 recalled Fisher-Price toys, suicide and died.

A few days after Cheung’s death, I paid a visit to Guangdong Entry-Exit Inspection and Quarantine Bureau and talked with Chen Yang, deputy directive of its toy lab. He told TOY INDUSTRY that, toy makers and traders were stirred by recent affairs. In fact, General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) had enhanced the supervision on toys, he added.

People in the industry express their concern for Cheung’s death, Lam Leung, president of Hong Kong-based Forward Winsome Industries Ltd and lots of other owners of toy business have made phone call to Guangdong Toy Association (GDTA) to know more about the latest news.

Industrial predicament

With two decades’ development, China has evolved into the largest toy production base in the world, which exported 17.76 billion USD of toys to the world in 2006. Currently, over 70 percent of toys are made in China.

However, these years see uprising price of raw materials, upvalution of RMB and higher cost of labor, along with adjusted policy on tax reimbursement on export and processing trade, toy industry that had once reaped great money has entered an era of meager profit, especially OEM maker. A little inappropriate operation might cause the maker to close down. Though Cheung’s affair is an accident, it reflects the severe surviving environment for the industry.

Li Zhuoming, administrative president of GDTA suggested that, when receiving orders, makers should estimate their abilities, neglecting order with over-low quotation and no definite quality requirement. In addition, orders in great export volume and short period for delivery, or obviously exceeds production capacity should not be received, since over loading will make quality uncontrollable.

“Made in China” still reliable

Some media in U.S. and western countries exaggerate the quality problem of China’s toys without restraint, mala fide claiming China’s products as evil items. In view of this, CCTV has programmed a feature on “Believing ‘Made in China’”. By this occasion, Li Changjiang, director general of AQSIQ makes response to various questions against quality of products “made in China”.

“During these years, quality of China’s exported products continues to improve, and over 99 percent are found to up to standard. We pay particular attention to safety of kids’ toys and foods,” Li says. He holds that, the fallacy of “China’s threat” and profession that considering China’s products as evil are among the new patterns of protectionism. “trade problems should not be rendered in a politic angle; otherwise, it comes into conflict with the development trend of economic globalization.”

Li indicates that, all should face up to quality problems China’s products meet. Being practical and realistic, when we enhance cooperation and communication with each other, we will find good solution to all knots. China will cement the quality supervision and international cooperation.

Rising tendency of protectionism against China in domestic U.S. has aroused great concern of American economists, who are strongly against it. Not long before, 1,028 economists united and sign their names, requesting U.S. congress members to keep to the principle of free trade, and rejecting the protectionism against China.

Toy export has people’s convince

Mattel announces that, they would not cease the production in China due to the problem of Lee Der. But it has began to amend its regulation and contacted with suppliers, so that the latter would be able to understand and implement the stricter quality requirement. It is known that, Mattel has around 80 supplying locations in China.

However, many toy makers have their worry about the current export, being afraid that the resistance would be spread from western countries to other regions like Latin America.

Yang Kaimao, founder of GDTA accepts the possibility, thinking that in a short time, toy export would encounter great toughness. However, he is convinced that, China’s companies would turn all difficulties into impetus and boost the industry to sail away.

After years of development, Guangdong’s toy industry has laid a solid foundation on production capacity, technique, business management and flow of fund. Toy products from China are highly competitive.

“Companies should enhance their development on high-tech original brands and step by step lower the percentage of OEM business in their production,” Yang says, “domestic market is to be tapped into.”