Risks Faced by China-based Toy Manufacturers

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clpstaff &clp articles

Recent concerns over safety in the toy industry should prompt foreign investors and PRC manufacturers to be aware of legal ramifications. This article explores ways of limiting potential liabilities when exporting goods to the US.

BACKGROUND

As China has become the world's factory, trade friction between China and the US has escalated as China's exports to the US continue to rise. Recently, China-made toys have made the headlines after a number of safety concerns were raised by the US government and numerous major recalls of toys were made by US toy retailers. China is one of the largest sources of US imports for many products. In 2006, China was the number one supplier for toys, with a staggering 86% of total US imports of toys coming from China.

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