China's toymaking capital tries to reinvent itself in hard times

'TSMC of toys' shows way forward for industry hit by rising wages, trade friction

20241118N silver robots marching MAIN

Guangdong Qunyu Interactive Technology, based in China's toymaking capital of Shantou, makes AI-powered robots that can talk and dance. (Photo by Itsuro Fujino)

ITSURO FUJINO, Nikkei staff writer

GUANGZHOU -- The Chinese area that is the world's top producer of toys is embracing high-tech production, artificial intelligence and other changes as its global exports fall.

The hard times can be seen in the gritty streets of the Chenghai district in the southern city of Shantou, Guangdong province. Small wholesale shops were open for business on a recent day, but there appeared to be few buyers.

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