- Published
On the underside of most children's toys on sale in the US you'll find the same three words – "Made in China".
asserted
you → publish → China
Nearly eight in 10 toys (78.3%) imported into the country in 2024 came from China, according to US government figures.
uncertain
toys → import → figures
Last year, toys imported from China were worth $9.8bn (£7.4bn), trade figures show.
asserted
figures → import → China
With Christmas on the horizon, the toy industry in the US and elsewhere is about to have its busiest time of the year by far.
asserted
industry → have → year
As retailers prepare their stocks for the festive rush, be they online giants or "mom-and-pop" physical stores, the BBC World Service's Follow the Money series traces how a toy gets from a factory in China to the US.
asserted
toy → prepare → US
And where the money goes.
asserted
money → go → ?
The factory
Guangdong province, which neighbours Hong Kong in southern China, is the heart of the country's toy manufacturing industry.
asserted
which → neighbour → industry
In the city of Dongguan workers on the floor of the Mihox factory pop plastic toys out of steel moulds, and pile them into crates ready for painting.
asserted
workers → pop → painting
The company says it employs more than 800 people and makes around 55 million toys a year for the American market, which represents half of its business.
asserted
which → say → business
Every toy starts with a design from a customer, such as an American toy company.
asserted
toy → start → company
The factory then makes a prototype, and builds moulds from which plastic parts and other components are formed.
asserted
parts → make → which
Going from the first idea to finished toy takes one to two years, says Melanie Wang from the Mihox sales team.
asserted
Wang → go → team
Much of that is the customer going back to the drawing board.
asserted
customer → go → board
"They modified the design again, again, and again to improve it."
asserted
They → modify → it
Once the design is signed off, things move more quickly.
asserted
things → sign → ?
A mould takes about a month to make, and the production run lasts about three months.
asserted
run → take → months
So, how much of the US retail price does the factory get?
asserted
factory → get → price
"About 20%," says Wang.
asserted
Wang → say → ?
On a $30 toy, that's $6, which has to cover the price of the plastic and other materials, production costs including wages, and what profit the factory makes.
asserted
factory → have → profit
Chinese factories typically make a profit of between 3% and 10%, according to Jay Foreman, chief executive of US toy firm Basic Fun.
uncertain
factories → make → Fun
So for a $30 toy that's between 60 and 18 cents of the $6 the factory charges to make it.
asserted
factory → charge → it
Many of his members moved their factories across the border into mainland China in the 1980s, attracted by cheaper land and labour.
asserted
Many → move → land
He says the way toys are made has barely changed since then.
asserted
toys → say → ?
"Automation now takes place mostly in the moulding and the packaging process.
asserted
Automation → take → moulding
"
And Chinese labour isn't cheap anymore, he adds, after recent rises.
asserted
he → add → rises
Average pay in Vietnam is about half of that in China, said one report, external at the start of this year.
asserted
report → say → year
Yet fewer than 10% of Ko's members have moved any production outside China, and in those cases mostly only because customers asked them to do so.
asserted
customers → move → them
The Chinese factories remain busy, he says, because a single toy can undergo more than one manufacturing process, from moulding the parts, to adding electronics, sewing materials, and final assembly.
asserted
toy → remain → electronics
This often requires it travelling to different factories.
asserted
This → require → factories
Ko adds that in Guangdong these separate facilities are located close to each other, and used to "working in harmony".
asserted
facilities → add → harmony
He says this makes the whole manufacturing process run more smoothly than in other countries.
asserted
process → say → countries
The ship
From the factory, the toy goes by truck to a port, such as Shenzhen, the biggest in Guangdong.
asserted
toy → go → Guangdong
Ivy Tse is co-founder of FreightAmigo, a Hong Kong logistics company that runs an online platform for both Hong Kong and mainland China exporters.
asserted
that → run → exporters
These businesses can book a cargo container, sea passage to an overseas destination, arrange insurance cover, and secure finance.
asserted
businesses → book → finance
Tse says it takes about 15 days for a cargo ship to get from Shenzhen to the US west coast, and 25 to 30 days to the east coast.
asserted
ship → say → coast
This year's Christmas toys left China in August and September.
asserted
toys → leave → August
Freight, from factory to the US, usually adds about 10% to the manufacturing cost of a toy, adds Tse.
asserted
Tse → add → toy
So if we stick to a toy that retails for $30 in the US, and therefore costs $6 to make in China, the cost of getting it to the states is 60 cents.
asserted
cost → stick → states
Once the toy reaches the US there is currently a tariff on Chinese toys that has to be paid to the US Customs and Border Protection (CBP).
asserted
that → reach → Customs
Following talks between President Trump and Chinese leader Xi Jinping last month, the two governments have recommended toys for lower tariffs.
asserted
governments → follow → tariffs
…and 16 more, not listed.
The Aporia
