How China Became the World's Toy Factory

Why most of the world's toys are made in China, especially in Guangdong, and how rising costs and trade tensions are shifting production.

A large share of the world’s toys are made in China.

Why China

Low labour costs from the 1980s onward.
Clusters in Guangdong province, such as Shantou and Dongguan, with thousands of toy factories and suppliers.
Plastics, moulds and electronics suppliers nearby.
Ports and logistics.

How it happened

Toy production moved from Hong Kong and Taiwan to mainland China as costs rose, following a pattern of labour-intensive industries moving to cheaper locations.

Changing costs

Rising wages in China.
US tariffs from 2018 and higher tariffs in 2025.
Supply chain risks revealed in the pandemic.

Shifting production

Toy makers moved some production to Vietnam, Indonesia, Mexico and India, a China+1 strategy.

Still dominant

Despite shifts, China’s scale and supplier networks keep it dominant, especially for complex toys.

The action figure

An action figure designed in the US is moulded, painted and packed in Guangdong using parts from dozens of nearby suppliers, then shipped worldwide.

Thinking toys are made where they're sold

Most toys are made in China and exported.

Key takeaways

China makes a large share of the world's toys.
Guangdong clusters offer suppliers, skills and ports.
Rising wages and tariffs are pushing some production elsewhere.
China remains dominant due to scale.