News Summary: U.S. demand for toys, games and sports products from China has decreased, leading to slow growth in exports and difficulties for some factories in China. The U.S. economy is expected to slow further in 2023, along with increased tariffs and bilateral tensions. On the other hand, demand for Chinese goods is increasing in other markets such as Southeast Asia.
20 of the factories Basic Fun works with in China told workers not to return immediately after the Lunar New Year holiday, due to a flood of inventory that wasn’t sold.
The CEO of Basic Fun expects U.S. consumer demand to pick up later this year.
Exports of toys, games, and sports to the US saw a slight drop in 2022.
Consumer electronics industry is also facing similar issues.
U.S. retail sales have slowed, and the US economy is expected to slow further in 2023, along with escalating tariffs and bilateral tensions with China.
Demand for Chinese goods is increasing in other markets such as Southeast Asia.
The drop in overseas demand reveals a more widespread employment problem of lack of highly skilled factory workers.
