Major Taiwanese news group Eastern Media International recently reported that, so far, Hong Kong’s toy industry has not been impacted by the US-China trade war, although many other sectors in the manufacturing business have been leaving China. However, with more and more negative expectations on the 90-day US-China negotiation, the Hong Kong toy factory owners are seriously considering relocating their facilities mainly to Vietnam and India. According to Lawrence Chan Wing-luen, Chairman of the Toy Industry Advisory Committee of the Hong Kong Trade Development Council (HKTDC), nowadays nine out of ten toys sold in the U.S. are made in China. More and more associated Hong Kong toy vendors are concerned about the trade war risks, which have mounted on top of the continuous cost increases that the Mainland manufacturing industry has seen in the recent years. For example, one of the largest Hong Kong toy makers, Wah Shing Toys, employs around 20,000 Mainland workers. Its board member Francis Wong Wai-cheuk said that the company is planning to move out.
Source: Eastern Media International, January 3, 2019