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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

Hundreds of activists from Latin America, North America and Europe have arrived in Cuba as part of an international solidarity convoy, bringing over 20 tons of humanitarian aid for Cubans struggling with a severe economic and energy crisis.

The first members of the convoy arrived in Cuba by air while a second group is expected to come aboard a flotilla that sailed out of Mexico.

The first group was officially welcomed to Cuba during a ceremony in Havana, where Cuban President Miguel Diaz-Canel expressed appreciation for the solidarity at a critical time for the Cuban people.

The group brought humanitarian aid to local hospitals including medicines to treat cancer patients. The activists were briefed about the hardships currently being faced by Cubans.

Convoy organizers met with Cuban government officials and talked to the media about their initiative.

"There are deeply humanistic motivations for this convoy. That's why people are conducting these 'acopios,' these aid collections in their own communities, in their own plazas, in their own homes, packing suitcases full of basic medicines that the blockade seeks to prevent the Cuban people from accessing," said David Adler, a convoy coordinator.

Cubans have endured a deep economic crisis for the past few years, made worse by a U.S. embargo. A recent oil blockade against the country has caused a severe energy shortage.

"For us, it's a good opportunity because we are walking in the neighborhoods, we are talking to ordinary people, we are hearing people's stories. With no intermediaries, we are hearing how difficult life is right now, how it's been difficult over the last few years but how its gotten infinitely worse in the last three months because of the fuel blockade brought on by Trump," said Manolo De Los Santos, the executive director of The People's Forum.

The activists said their task is to shed light on what U.S. government policies are doing to Cuba. British Member of Parliament Jeremy Corbyn, who has joined other parliamentarians in the convoy, said that their presence in Cuba is sending a clear message.

"I think the images around the world of ordinary people coming to Cuba with the necessary equipment for children to be treated in hospital, to repair the damaged electricity system and all the rest of it is very important, and I think that will lead to pressure on governments all around the world," said Corbyn.

The 10th Summit of the Community of Latin American and Caribbean States (CELAC), which concluded in the Colombian capital Bogota on Saturday, adopted the Bogota Declaration, calling on relevant countries to abide by UN resolutions and end the economic, commercial and financial blockade against Cuba.

Cuban Foreign Minister Bruno Rodriguez said in his speech that Cuba is facing severe challenges and is engaged in a struggle for dignity and freedom. Cuba is willing to conduct serious and responsible dialogue with the United States on the basis of mutual respect, but the precondition is that neither side should interfere in each other's internal affairs or their respective political, economic and social systems.

Global activists arrive in Cuba with humanitarian aid

Global activists arrive in Cuba with humanitarian aid

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