New EU toy regulations that took effect this month are expected to impact the Chinese toy industry. In 2012, the value of China’s toy exports totaled $11.45 billion, with $2.6 billion in exports to the EU, the second-largest market. The regulations specify mechanical, electrical, chemical and hygiene requirements for toys, including chemical content. Among the new restrictions are a ban on the use of N-nitrosamine and the lowering of the amount of arsenic allowed per gram from 25 mg to 0.9 mg. A survey by local authorities found that 80% of the toys produced by 20 companies in Hangzhou did not satisfy the requirements. To assist the over 2,400 toy producers in China in meeting the new requirements, the government has offered training and has invested in research on testing for heavy metals. The Chinese toy industry is already under pressure, with export growth slowing from 7.4% to 5.8% in the first half of the year. However, some observers believe the increase in toy quality will help the industry become more competitive and seek new markets, such as emerging countries.

Source: China Daily