Business

Chinese toys factories were closed
by kristina leskova

The Pearl River Delta is a location in southern China where the Pearl River flows into South China Sea. The province Guangdong has become a one of the leading economic regions and a major manufacturing center of mainland China. This province borders with Hong Kong and it is main gateway into China for foreign investors. Most companies from Hong Kong, Taiwan, America and Europe opened their factories directly on this place due to low costs. They produce goods like electronic products, toys, textiles plastic products and other. But now this area has some problems. It is because of the financial crisis in the United States of America. It influences the whole world and China is not an exception. Many people who worked in toys factories lost their jobs. The reason was increasing of labor costs, production costs and also the increase of the value of Juan. In the last three or four years the labor costs were still increasing, but companies like Toys “R” Us, Home depot or Wal-Mart do not want to increase the prices of toys. So it happened very easily that some factories were not able to exist further. News Agency informed that 3631 exporters of toys had to close their business. And it is more than probably that there will be even more exporters who will be enforced to close the factories. But the worst thing is that many employees who are now unemployed did not get paid. Many employees protested in front of the factory. They are angry because they had no idea that they could lose their jobs. China toys are also unpopular because of problems with safety. So I am really curious what will bring the financial crisis for Chinese exporters.

related story: http://news.yahoo.com/s/ap/20081019/ap_on_re_as/as_china_factory_woes;_ylt=Am0tfmakdtSEy34KZ01Ey7qs0NUE

by kristina leskova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova

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posted by Blog TechSource @ 6:17 AM