DONGGUAN, China/HONG KONG -- At its peak, the city of Dongguan in southern China produced half of the world's toys, including one in three Barbie dolls.
Then rising costs and fierce competition from manufacturers in Southeast Asia began to bite, and thousands of factories were forced out of business as profits shrank. China's ongoing trade war with the U.S., a key market for toymakers, has only made things worse.
