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Chinese toy makers in Dongguan pivot to domestic market amid U.S. tariff storm

China

China

China

Chinese toy makers in Dongguan pivot to domestic market amid U.S. tariff storm

2025-05-08 21:18 Last Updated At:23:57

Export-oriented companies in the southern Chinese city of Dongguan, a global toy manufacturing hub, are tapping into the domestic market with the help of e-commerce platforms and AI-powered product innovation to counter U.S. tariff pressures.

Dongguan, home to over 5,500 toy manufacturing-related enterprises, produces nearly a quarter of the world's animation derivatives and 85 percent of China's designer toys. Yet, the "capital of toys" faced significant challenges from the sudden tariff surge imposed by the Trump administration.

The Dongguan Jollybaby Products Company, which previously derived 20 percent of its export revenue from the American market, saw nearly all of its 1,000-plus U.S. orders canceled after the imposition of tariffs as high as 145 percent.

The company's director general Wang Zhen, a veteran toy trader who has been engaged in this industry for 22 years, keenly perceived the opportunities for market expansion amid the tariff war.

On April 11, the platform announced a 200-billion-yuan large-scale procurement initiative to help foreign trade enterprises quickly expand into the domestic market.

"After we contacted them, they responded very quickly. They immediately sent us their procurement policy. At a little past 12 o'clock at night, they sent me a message saying that they had decided to place an order of one million cloth books. At that time, our company chat room was in an uproar. Everyone was extremely excited," said Wang.

After that, the company put in intense work - the production department worked overtime to change the packaging, the research and development department optimized and adjusted the products, and the logistics department planned the transportation routes in advance to ensure that the goods could be delivered in time. Eventually, Jollybaby's products were put on sale on JD.com in less than 72 hours after Wang received the partnership message.

Wang's cloth books sold over 80,000 copies on the e-commerce platform in less than two weeks. The responsible entrepreneur decided to help more local tariffs-affected toy manufacturers to withstand the shock.

On April 24, Wang organized a business matchmaking event to provide a place for one-on-one negotiations between e-commerce platforms and over 80 enterprises in Dongguan's Chashan Town, helping more export-oriented firms shift to domestic sales.

"Our products were mainly sold to the United States, with the sales accounting for 50 percent or more of our total business volume. We have never done domestic sales before. We believe that we could take advantage of this platform to establish a connection with JD.com and explore how it can guide us in domestic sales and achieve growth in the domestic market," said Lin Jiaoting, deputy head of Dongguan Wang Yat Plastic Toys Company.

With greater ambitions for the promising Chinese market, Chashan toy makers are also deploying new strategic approaches, seeking to capture market share through innovative products supported by artificial intelligence (AI) technology.

"We want to empower toy enterprises with AI, enabling them to build their own brands and create their own IPs (intellectual properties) by making AI toys, and to handle all channels and processes from production, research and development to sales, thereby increasing added value," said Chen Xiaowei, deputy chief of Chashan Town.

"We create opportunities amid crises. Only in this way can we deeply realize that we need to build our own brands. Only when our brands grow stronger and bigger can they have a foothold in the global market," Wang said.

Chinese toy makers in Dongguan pivot to domestic market amid U.S. tariff storm

Chinese toy makers in Dongguan pivot to domestic market amid U.S. tariff storm

Iran's Foreign Minister Seyed Abbas Araghchi said Friday night that the signing of a memorandum of understanding (MoU) with the United States to end the war could take place within the next few days.

In an interview with state-run IRIB TV, Araghchi said that upon finalized, the MoU will be signed digitally by both sides in their respective countries and then announced. He added that following the potential signing, both parties will commit not to initiate any other war, and will begin the second stage of negotiations, scheduled within a 60-day period, to reach a final agreement, focusing mainly on Iran's nuclear program and sanctions removal.

He stressed that Tehran insists that the only acceptable way of dealing with its highly enriched uranium will be diluting it within Iranian territory.

Araghchi also said that the potential MoU would include provisions for ending the war on all fronts, including Lebanon, requiring Israel to withdraw from the occupied areas.

Other key issues in the MoU include the reopening of the Strait of Hormuz, the full lifting of the U.S. anti-Iran naval blockade, and the release of Iran's frozen assets, he noted.

On the Strait of Hormuz, Araghchi said its management will definitely not to return the pre-war era. While Iran will retain sovereignty and a military presence, a legal system consistent with international law will be established, he said.

He ruled out tolls for passage but noted that charging service fees will be reasonable.

U.S. President Donald Trump said Thursday that the United States had "just made a great settlement of the war with Iran," with an agreement expected "over the next few days."

Over recent weeks, Iran and the United States have exchanged several peace proposals through Pakistan's mediation, and have been working to finalize an MoU to end the war.

Iran's FM says signing of MoU with US possible within few days

Iran's FM says signing of MoU with US possible within few days

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