Chinese Toy Industry Comparative Advantage Analysis And Development Strategy Recommendations

Being the biggest toy manufacturing base in the world, China is the main toy supplier of most developed countries and areas. Toy became one of the pillar export products in China. Processing trade accounts for 95% of the total value, and most of them are medium and low-end products in which plush toys are representatives.In the 21^st century, electronic games and high-tech toy have a bright future; toys for adults also become a new economic growing point. This trend brings lots of opportunities for China's toy industry, but the shortage of processing trade which long-term survives on foreign brands become more and more obvious. China is a big toy-making country, but not a strong one. Although exports increase year after year, only the number of processing trade is enlarging. Compared with the advanced international toy industry, China's toy industry is of spacial difference in the following aspects: low content of science and technology, lack of brands, potential quality worries, blankness of adult and elder toy market. So it is urgent for China's toy industry to strengthen the research on comparative advantage of China's toy industry and lead it to develop healthily and positively.From economic and international trade's point of view, this paper is trying to estimate present conditions and comparative advantages of China's toy industry, and discuss ideas and measures which can be used for reference through comparison of this industry between China and Japan. It also gives some suggestions about the strategy to improve our competitiveness for future development.