| China is the world's largest toy producer, around 70% of the toys are "Made in China". Exports of toy play an important role in China's foreign trade. However, the second half of 2007, the global financial turmoil has brought many negative effects to the Chinese toy industry, such as substantially reduced market demand, increasing costs like raw materials, labor. Meanwhile, with the "toy recall" events occur frequently, toys' using security has become the focus of consumers' concern.With the continuous development of trade protectionism, the traditional means of protection under international trade rules, international trade restrictions and constraints, the gradual reduction of tariff barriers, the traditional non-tariff barriers are being gradually abolished. However, WTO/TBT-SPS framework of technical barriers to trade on the use of exceptions and special provisions, technical barriers to international trade, become the most important and most widely used tool for trade protection. European Union as the second largest importer of Chinese toys, is one of the birthplaces of the technical barriers to trade, the release of the "new EU toy safety Directive" (2009/48/EC) on July 20,2011 formally implemented to enforce toy market access threshold criterion, therefore, Chinese toy exports enterprises are facing a severe test for survival. Based on the analysis of the characteristics and technical barriers to trade, current development of China's toy industry, combined with the new EU directive on toy safety, evaluated the technical barriers to trade impact of China's toy industry, trying to explore competitive strategy for Chinese toys export to the EU market, and a suitable Strategy for sustainable development in Chinese toy industry.The paper is divided into three parts, background information and basic theoretical research and regulations introduction, China's toy industry current status and the impact of technical barriers to trade, cause analysis and countermeasures.The first part includes chapter 1 and chapter 2. Chapter 1 introduces the research background, significance, a lot of literature review, and proposes research methods. Chapter 2 is to explain the theory of technical barriers to trade, about the meaning, characteristics and expressions. In particular, the characteristics of the EU technical barriers to trade states independently, as a separate study, and the detailed interpretation of EU laws and regulations. For the paper is to examine how technical barriers trade across the EU, so this research is focus on the characteristics of the EU TBT regulations, to provide theoretical and legislative support for the following response strategies.The second part consists of Chapter 3 and Chapter 4. Chapter 3 analyzes the quo status of China's toy industry and micro enterprises, extracts their strengths and weaknesses. Keeping advantage and making up the shortfall is the only way to meet challenges and over knot. Chapter 4 analyzed the positive and negative aspects of the EU technical barriers to trade on China's toy exports. On one hand, TBT increases costs, improves market access standards, affect the image of Chinese toy industry, and hindering export, the other hand, stimulates technological innovation, improves industrial restructuring and be conducive to the establishment of relevant national system.The third part is made up of Chapter 5 and Chapter 6. Chapter 5, explores the international and domestic causing factors. Internationally, in the background of the major environment, we companies have to face such a difficult situation, and significantly analyze domestic problems. From the list of the many factors that can be seen, government, industry associations and enterprises need to take up their own responsibilities, revise future directions, and provide the foundation for the following countermeasures. Chapter 6, provides some countermeasures from the standpoints of state, industry association and enterprises. The government should from the grasp the international technical barriers' development, establish advisory bodies, strengthen legal system and regulations, and train personnel; Industry associations should play a coordinating and guiding role in setting industry standards, strengthen self-discipline, establish early warning mechanisms and promote the development of the collaborative prosper; Companies should develop positive innovations, expand the target consumer groups, acquire knowledge of the international systems and regulations, improve the added value in the product, increase awareness of social responsibility and etc. |