Actively carrying out research and survey and notifying members on U.S. recalls and highlights to be pay regards to, reflecting opinions of companies to related governmental departments and releasing news with definite object in view to news media…such measures are adopted in response to policy adjustment and CPSC recalls. Li Zhuoming, administrative vice president of Guangdong Toy Association (GDTA) makes notice to attendees.

In view of recent adjustment on tax reimbursement on export and policy of processing trading export and frequent recalls on toys exported to U.S,, on August 28, GDTA and Guangdong Research Council of Toy Cultural & Economic Development (GRCTCED) held a meeting for discussion on current situation and future development strategy, calling presidents and secretaries-general from toy associations of Dongguan, Shenzhen, Chenghai, Nanhai and Guangzhou, which are all key toy production bases in China.

Making speech eagerly, attendees agree on the measures adopted by GDTA and give voice to respective idea on present difficulties of toy companies as well as future development.

Generally received quality

During these months, since some of China’s toys have been recalled in U.S., China’s toy business is affected to some extend in both domestic and overseas markets, misleading some consumers to the concept that lots of quality problems exist in China’s toys. In fact, however, a vast majority of China’s toys are up to standard, which can be considered the best in the world. Statistics from Ministry of Commerce shows that, in 2006, 300,000 batches of toys were exported to U.S., among which only 29 batches were recalled. It is a very small percentage.

Within the latest two decades, most of famous brand toys distributed worldwide are made in Guangdong. Their brisk sales in Europe and U.S., which see strict requirement on quality, can be translated into reliable quality and technique of toys made in Guangdong, attendees hold.

As to products recalled this period, a toy bird is reported to contain lead in its eyebrow. Some attendees feel at seas about it—what’s the volume of exceedance? And how is its hazard on human body? So far, we do not see any data about it, so it is expected that U.S. will release concerning data. In fact, a great part of involved products are recalled for defect in design, for which China’s makers are not responsible.

No closing-down plague at all

Some media are alleging that, due to various factors like lowered tax reimbursement on export, adjusted export policy on processing trading export, upvaluation of RMB and higher production cost, Guangdong toy industry is now facing harsh situation and a large number of makers would be closed won and moved.

Presidents in the meeting, most of who are owners of toy factories, make response that, several policy launched recently do impose great affect on companies’ operation, and urge them to make corresponding adjustment. But there is no sign of closing down and moving at all. Coverage of media is only suppose, instead of objective fact.

Within a long history of development, Guangdong’s toy industry has accumulated good experience against difficulties and would survive and develop with obstinacy. As to the argument of moving to other cities, or even Southeast Asia, it is unpractical. Guangdong has formed a complete industrial chain, coming with well-developed logistics and accessories. There is no similar convenience outside the province.

Expecting more support from government

Just as what Ministry of Commerce’s data shows, a majority of toys in China see no problem in quality. Instead, after recent recalls, most of toy companies are inspired to pursue better quality of products.

But some attendees reflect that, some governmental departments are over-prepared for any eventualities. They cancel some convenient procedures for companies. Meanwhile, since testing labs are overloaded these days, a single inspection item might consume clients over 10 days, or extra charge for urgent demand. Moreover, testing labs are not located in reasonable way, affecting the efficiency of companies’ export operation.

Therefore, it is attendees’ expectation that, governmental departments would tackle the problems in according to reality, and offer more aids and supports to companies.

Turning pressure into motive power

Attendees have to accept the fact that, warning and recall from European and American countries have affected toy industry of Guangdong. Some signs tell us that, toy export in the future would see higher technical barrier and stricter requirements.

Attendees have expressed their own views on the above toughness. Firstly, those in the industry must unite and get more communication. It is necessary for them to reflect status quo to government and work in concert with the latter. Secondly, makers must keep improving their quality control and perfect internal management. Finally, as to unreasonable order or unfair terms in contract, toy makers must have the courage to say “no”. At the same time, they are encouraged to claim their legit interests and reject price war. On this aspect, recalls this period may be considered good opportunity, which arouse recognition of the whole industry on quality.

Concerning the adjusted policy on processing trade, presidents and secretaries-general believe that, though the business is the strong point for Guangdong’s toy production, the pattern of pursuing creative origination and independent brands is the right direction for the province, which has laid solid foundation on both technique and funds. Though it would not be a smooth way for it, those in the trade should make active attempt. It is expected that, government can cement its power on cracking down pirate and administrating market, as well as provide policy support to companies that are engaged in innovation. Only by this means could industrial mix see its upgrade.