Chrismas Santa Claus Toys in China

SHENZHEN This southern city in China,once the centre of Christmas gift manufacturing, is losing its dominance due to rising costs and a higher minimum wage for workers, said those in the industry.

The working environment is worse for us, and I'm afraid I have to move my factory out of here soon,"said Zhang Renzhong, general manager of Yuanxing Christmas Production Co.

Zhang's factory has produced artificial Christmas trees and gifts in Dapeng of eastern Shenzhen for more than a decade, mainly supplying the United States and European markets.

"This year the order for Christmas products decreased nearly 30 per cent," Zhang said. "We tried to raise prices to cover losses generated by the higher costs of raw materials, but many foreign buyers wouldn't accept it."

Official figures for the export of Christmas gifts this year are not yet available. In the past, reports said eight out of every 10 artificial trees sold in the United States were made in the city.Prices for raw materials such as plastic and colour toner surged 20 to 30 per cent from a year before, Zhang said.

Another factor making business tough is the government's new policy for a higher minimum wage for workers, which went into effect on July 1.The policy requires employers outside Shenzhen to pay workers at least 700 yuan (US$88.6) per month. The previous minimum was 580 yuan (US$73.4).

[ Source : from Chinadaily.com.cn ]