Yong Qin Industrial (Heyuan) Co., Ltd., the MATTEL toy's domestic foundry company, won. Although the MATTEL toy recall incident swept the world last year, the company's business volume has not declined this year, and its annual growth is expected to reach 30%.

This is just a microcosm of the toy industry in Guangdong after China's toys were called back.

Since last April, the MATTEL toy recall incident in the United States has caused a great stir in the world. The toys made in China have been subjected to many unfair treatment in the world. At one time, the toy industry in China has been in a low ebb, and at the same time, it has triggered a huge nationwide rectification.

More than a year later, as a big toy exporters in China, how is the overall export status of Guangdong toys? Can we get out of the lowest tide in the industry? Statistics from Guangdong inspection and Quarantine Bureau show that Guangdong toys are more healthy after undergoing a baptism. The export volume of the first half of the year has dropped considerably, but the total export volume has declined by a small margin, showing that the overall quality and technical content of the exported toy products in Guangdong are improving, and step by step out of the trough.

The Domino effect triggered by the MATTEL recall in China reflects the bias of foreign markets to Chinese products on the one hand. On the other hand, it also exposes some weak links of domestic toy manufacturers, which are easily fatal to toy manufacturers.

To build a healthy body needs to start from itself.

Since the second half of last year, the special rectification of export toy quality and safety launched by the AQSIQ has opened a prelude to the major renovation.

Since the beginning of this year, the Guangdong inspection and Quarantine Bureau has launched a remedial action again.

If the special rectification in the second half of last year is mainly carried out by the AQSIQ's rectification measures, this year's renovation is from Guangdong's "introspection".

"This year's regulation is focused on family planning. In view of the recent recall and notification of toys exported by the United States and the European Union to our district, we have organized a comprehensive survey of the number, scale, distribution, quality and safety control capacity and safety situation of export toy manufacturers in our district, and on this basis, we re screened the export licenses of toy enterprises in Guangdong."

The head of the inspection and Quarantine Department of the Guangdong inspection and Quarantine Bureau, who is in charge of Guangdong toy export inspection and quarantine, said the responsible person.

According to Guangdong inspection and Quarantine Bureau data, before the special rectification, there were more than 1400 toy export enterprises in the Guangdong area. After this year's renovation, 366 enterprises were withdrawn (hoisting) licenses, accounting for about 1/4244 of the total number of export enterprises, and 713 of them were suspended for 713 years. "The survival of the fittest and the export of toys in Guangdong have been greatly reshuffled".

Over the past year, Guangdong's export toy enterprises have been reborn.

People in the toy industry in Guangdong say that enterprises that are eliminated in rectification are proved to be small enterprises with low quality control capability.

With the sharp rise in international oil prices, the appreciation of the renminbi, the substantial increase in production costs, and the increasing market access threshold for foreign countries, the enterprises being cleaned out are either unable to withstand fierce market competition or abandon the market voluntarily, or are constrained by their own small-scale and low quality industries.

"Export toy companies shuffle the cards to make the strong Heng Qiang."

According to industry sources, a large number of non-standard small businesses have been closed down and banned.

China is the largest toy manufacturing base in the world, and 70% of the toy exports in the country have appeared in Guangdong. The good industrial chain that has been laid out for many years is bound to shake the status of Guangdong's export toy industry in the world toy industry.

Despite the recall of MATTEL toys last year, the toy export orders were mostly signed at the beginning of the year. The toys exported by the Guangdong inspection and Quarantine Bureau in 2007 did not decrease, but increased by 16%, especially after October last year.

Last year, the industry had expected that the export situation of toys in Guangdong will be quite severe this year. However, the data show that the total value of toy exports in Guangdong in the first half of this year has been reduced, but the degree of reduction is not large.

As of June 30, 2008, the inspection and Quarantine Bureau of Guangdong (excluding Shenzhen and Zhuhai) had approved the 174 thousand batch of exported toys, with an amount of US $1 billion 850 million, a decrease of 15.2% from the same period of last year and a 0.9% reduction in the volume of export toys.

Wing Chin Industrial (Heyuan) Co., Ltd. is one of Mattel Inc's largest processing enterprises in China.

The manager of the company, Mr. Chen, revealed that after the recall of MATTEL, after the special rectification of the domestic toy industry, the original more than 100 MATTEL processing enterprises in Guangdong province nearly collapsed, and now only 50 to 60. Yong Qin has not been implicated because it has always attached importance to the quality inspection system. This year, orders have not been reduced, but the export volume is estimated to increase by about 30% this year.

Similarly, in Dongguan, a toy manufacturing industry in Guangdong, the number of export toy enterprises decreased from more than 700 to 472 now. However, in the first half of this year, the number and value of toys exported to Dongguan port increased simultaneously, and the value of goods increased by 22%.

"Many of the orders that were originally produced by small enterprises were gradually carved up by large enterprises, so that the competitiveness of large enterprises was stronger and grew faster, and the gold content of export toys was also rising, which is why the export volume did not change much."

The head of Guangdong inspection and Quarantine Bureau explained.

"Through a year of special rectification, the quality and safety awareness of toy enterprises in the Guangdong Bureau has been significantly improved. After the re export of toys, the overall level of export toy enterprises has been optimized, and enterprises' awareness of the design verification of toy products, the safety of raw materials, the creation of brands and safety awareness have been greatly improved, and the ability to cope with the toy quality storm in the EU has also been improved."

Guangdong inspection and Quarantine Bureau said that the number of toy orders for Canton Fair was better than expected this year, and the price of toys rose generally at this Canton Fair. The toy exports with high technological content increased rapidly, and the rapid growth of emerging markets such as Russia and Southeast Asia formed a new growth point for export toys in Guangdong, and the signs of recovery of export toys began to appear.

With the arrival of the peak season for export toys in the second half of this year and the arrival of Foreign Christmas, Guangdong toy export is expected to increase significantly in the second half of this year, with an expected increase of 2%.

There are indications that MATTEL toy recall and special rectification, the most difficult period of export toy enterprises in Guangdong has passed, and Guangdong's export toy industry is gradually going out of the doldrums.

However, the industry has warned that foreign toy safety regulations and technical standards are becoming more stringent. It is still time to revive the toy industry in Guangdong.

According to manufacturers, Chinese toys are very popular in Eastern Europe under the restriction of Europe and America.

In order to avoid the restriction of safety technical barriers, small and medium-sized toy enterprises can expand their export priorities from Europe and America to other countries or regions with relatively low safety and technical barriers.

In developing new varieties, educational toys, antibacterial plastic toys, magic props, adult toys and pet toys have different markets.