The 22nd China Shantou (Chenghai) International Toys and Gifts Fair Photo: Courtesy of Shantou municipal government

Producers at the toy production hub in Shantou, South China's Guangdong Province have gained a new round of orders from abroad in what could be a sign of another bull year for exports, despite global challenges such as high inflation and US-led trade protectionism.

At Chenghai district, Shantou, home to 50 percent of China's toy production and more than 30 percent of global production, a three-day toy fair - the 22nd China Shantou (Chenghai) International Toys and Gifts Fair - concluded on Monday, with record deals being inked.

The event, the first of its kind in three years since the epidemic began, drew tens of thousands of visitors from China and overseas, mostly producers and traders who were eager to see old partners and meet new ones, and more importantly to place orders. The prospective purchase agreements signed during the event hit a record, reaching over 10.8 billion yuan ($1.57 billion).

The 22nd China Shantou (Chenghai) International Toys and Gifts Fair Photo: Yin Yeping/GT

Sully Sullivan, an American businessperson, who attended the fair for the first time was excited about the event and signed a partnership deal with local toy manufacturers.

"It is very important to have face-to-face contact with business clients, which was not possible due to the epidemic... this year's business is going to be a lot better," he said.

Sutjiadi Lukas, chair of the Indonesian Toy Association, has visited Chenghai more than 30 times and is now an industry veteran.

Lukas said that more than 60 percent of the toys in Indonesia are from Chenghai, indicating the importance for his business. This time, he brought dozens of people with him from Indonesia to talk business and place orders.

Chinese-made toys have also gained a foothold in the Russian market. Mikhail D., an employee with a consulting service that is a partner of OZON, a leading e-commerce platform in Russia, told the Global Times that there are growing opportunities for Chinese products in the Russian market, toys in particular.

China is the world's biggest producer of toys. More than 80 percent of the toys sold in the Russian market are made in China, and this proportion is growing after many European brands quit the market following the sanctions against Russia, he said.

The 22nd China Shantou (Chenghai) International Toys and Gifts Fair Photo: Yin Yeping/GT

There are currently about 15,000 active Chinese sellers with stores on the platform, but he expects this number to jump to as much as 100,000 this year.

Chenghai district has a population of less than a million, but it is home to more than 40,000 toy companies.

The region started with small family-run workshops, developing and producing toys by hand. After more than 40 years of development, its toy industry has formed a complete industrial and supply chain including raw material supply, R&D, design, manufacturing and sales.

The lingering global headwinds including high inflation, geopolitical conflicts and protectionism led by the US, have caused potential disruption for Chinese technology, products and companies in going overseas.

Speaking at the event, Zhang Ying, vice president of the China Toy and Juvenile Products Association, said that at present, China's toy industry is facing uncertain factors such as slowing global demand and rising protectionism. To achieve long-term sustainable development, Chinese-made toys need to be "more high-end, intelligent and eco-friendly," she added.

Despite the challenges, the export value of China's toys amounted to $48.36 billion in 2022, an increase of 5.6 percent year-on-year, partially due to the complete supply chain and self-branding advantages of Chinese-made toys.

Lin Lichun, business manager of Shantou Flying Technology, a producer of remote-control toys, is a direct witness of the local progress.

From being an original equipment manufacturer to self-branding and developing a full supply chain, the company now exports all its products, mainly to the US and European market, Lin told the Global Times.

Even with high inflation and other factors, their export volume last year still reached 100 million yuan, Lin said.

The positive trend is likely to continue this year as the government ramps up policy support. Speaking at the opening ceremony of the fair, Wen Zhanbin, Party secretary of Shantou, pledged to further promote the upgrading of the toy creative industry, and create an industrial cluster with global competitiveness.