New Delhi, May 29 (IANS) Factory closures and job losses have hit China’s toy industry amid weakening global demand, rising production costs and ongoing supply chain disruptions, a report has said.

According to an analysis of PML Daily, the industry — which was once a key pillar of China’s export manufacturing base — reportedly facing one of its most severe downturns in decades, with orders falling sharply across multiple production hubs.

Manufacturers are increasingly under pressure from higher raw material prices, elevated logistics costs and declining overseas demand, the report said.

It further stated that several factories in key industrial clusters have either suspended operations or shut down in recent months, reflecting broader stress in export-oriented manufacturing sectors.

In one instance cited, multiple toy production units in Yulin, Guangxi were shut down on the same day, leading to sudden job losses for thousands of workers.

The closures reportedly triggered worker protests over unpaid wages and pending dues, highlighting growing labour-related tensions in affected industrial zones. Local authorities were deployed in some areas to manage the situation.

In addition, the industry has been impacted by rising transportation costs, with shipping expenses on major trade routes reportedly increasing significantly over the past year due to global geopolitical tensions and disruptions in key maritime corridors.

Higher crude oil prices have further pushed up the cost of plastics and other input materials, squeezing margins for manufacturers.

According to the report, container freight rates on some routes have more than doubled compared to previous levels, adding further strain on exporters already dealing with weak demand from key markets.

As a result, several firms have scaled back production or shut down operations entirely, it added.

It pointed out that China’s toy industry, which is heavily dependent on export markets, remains vulnerable to global demand cycles and external shocks.

The report said the sector’s challenges reflect broader pressures on China’s export-led manufacturing model, particularly in labour-intensive industries where margins are thin and global competition is intense.

–IANS

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