The country’s total toy exports reached $4.18 billion in the first seven months of the year, up only 2.1 per cent. The growth declined 22.4 percentage points year-on-year.
Guangdong, which accounts for around 70 percent of the country's total toy exports, exported $2.91 billion during that period, up 4.8 per cent year-on-year. The growth declined 39 percentage points.
China Business News reported that the fall has been influenced by many factors including the US credit crisis, the appreciation of the renminbi, export tax rebate cuts and rising production costs.
A total of 1,404 toy enterprises in Guangdong contributed to the Guangzhou Customs statistics, of which 374 were newly added businesses.
From January to July, 3,618 enterprises quit the export market, accounting for 77.8 per cent of the total export.
Statistics indicated that the number of Guangdong enterprises with toy exports of more than $10 million reached 45 in the first seven months of this year, six more than in the same period last year. Their aggregate exports hit $1.63 billion, accounting for 55.9 per cent of Guangdong's total toy exports.
Four firms reported exports of more than $100 million reached, one more than the same period last year. The aggregate exports from these companies hit $710 million, accounting for 24.4 per cent of the total exports.
Meanwhile, the total exports of the 3,618 enterprises that quit the export market reached $220 million during the period, accounting for 7.8 per cent of the total exports during that period.
Many small and medium enterprises that depend on low price competition are under pressure. Orders have decreased in many cases and the companies cannot digest rising costs due to weak negotiation abilities.