NEWS

China’s worries could have an impact across the globe

Published on: 25th August 2015

The world is starting to react following the devaluing of the yuan to its lowest rate against the US dollar in almost three years.

China-480

Photo: Getty Images 2010

The decision has been made following weak economic data and aims to make exports cheaper. However, it is thought that the move to devalue the yuan by 1.9% will have global ramifications both in the short and the long term.

The country has reported a dramatic fall in exports and a drop in producer prices to a near six-year low. Imports have also plummeted 8.1%, and have been down for nine months running. Year-to-date imports dropped 14.6% in yuan terms. In total, China’s trade surplus has dropped 8.5% from June, to $43.03 billion.

A number of manufacturing plants in China have shut down and claims of unpaid wages are filtering through the country. Toy manufacturer Ever Force Toys & Electronics was recently protesting, demanding three months’ worth of pay.

Stock markets have now dramatically fallen around the globe amid fears of an economic slowdown.
London’s FTSE 100 index closed down 4.6% at 5,898.87, with major markets in France and Germany also down by 5.5% and 4.96%.

What impact do you think the situation in China will have on the UK toy industry? We’re keen to hear your views – email emily@toyworldmag.co.uk.

RECENT ARTICLES

Amazon under renewed fire over destruction of unsold stock

All UK Disney Stores except flagship rumoured to be closing

UK retail supply chain needs more drivers and warehouses

Kidicraft welcomes Katy Greenwood as company expands

Lego brings multiplayer to Lego Super Mario with addition of Lego Luigi

BargainMax logo

Bargain Max launches discount referral scheme

Halilit bolsters sales team with addition of Stephanie Malinowski

IMC launches OTT platform combining content with eCommerce

Exploding Kittens unveils its first licensed game, Exploding Minions

Germany’s 468 SPAC to acquire Boxine, the company behind the Tonies brand