Demand for toy exports rebounds

CUSTOMS authorities in Guangdong Province, a major base for the toy-making industry in southern China, said demand for exported toys has rebounded despite a spate of recall dramas earlier this year.

Latest statistics obtained from the Huangpu Customs show the value of toys exported by the province fell 5.4 percent in September compared to the same period last year, but it rebounded to post a year-on-year rise of 27.6 percent in October.

Customs analysts said the rebound was spurred by rising demand in the Christmas retail season, and it also shows that toy recalls, staged by United States toy maker Mattel Inc. But the row over lead-contaminated surface paint since summer seemed to have had limited impact on the province's toy exports.

Mattel apologized to China in September that 87 percent of the recalled toys were found to have loose magnets - a design defect by Mattel - and 13 percent of which contained excessive lead.

China is the world's biggest toy exporter. In 2006, it sold 22 billion sets of toys overseas, about 60 percent of the global total.

In order to address safety concerns over toys and other products, the Chinese government introduced a landmark recall system in the summer, launched a four-month-long nationwide product quality campaign, and offered intensive training courses to domestic toy manufacturers.

In the first 10 months, Guangdong exported toys worth a total of US$4.94 billion, up 22.9 percent over the same period last year. About US$3.92 billion, or 79 percent of the total, were exported to the US and the European Union.

Exports to the US alone were worth US$2.31 billion, a jump of 15.4 percent over the same period last year, while a 53.6-percent hike was seen in exports to Latin American countries.

The provincial Quarantine and Inspection Bureau announced at the end of October that it discovered problems like substandard paint and loose parts in toys. The bureau withdrew production licenses from 423 toy makers, suspended licenses of 341 toy firms, and ordered 690 others to improve their working practices.