SMEs join forces for toy production in Dongguan, S China's Guangdong

Currently, the number of small and medium-sized enterprises (SMEs) in China exceeds 60 million, making them a key driver of economic development. At this moment, SMEs in various sectors are working hard to achieve a strong start in the first quarter of the year.

In Dongguan, south China's Guangdong Province, which is a hub for toy manufacturing, local companies recently secured an order for mini toys inspired by the animated film "Ne Zha 2" worth over 100 million yuan (about $13.78 million), with a tight deadline.

Workers make toys inspired by the animated film "Ne Zha 2" in a company in Dongguan, south China's Guangdong Province. (Guangzhou Daily/Lu Zheng)

To fulfill this order, local SMEs formed a special alliance during the Spring Festival of 2025.

Molds are the cornerstone of toy manufacturing. They are used to shape raw materials into precise components through injection molding. Beyond that, a finished toy goes through more than 10 steps, including painting, printing, and assembly.

The biggest challenge for the companies is to produce 100 sets of molds within just 10 days—an immense task, given that a set of mold typically takes over 35 days to complete. Reducing the timeline has become the toughest hurdle.

Shipai township in Dongguan is home to over 500 SMEs specializing in toy production and 136 supporting enterprises. The local government has set up a dedicated office for the toy industry and annually allocates 10 million yuan to support the industry. With government support, 12 mold manufacturers from Shipai and neighboring townships quickly stepped up to take on the order.

In recent days, several more toy companies have voluntarily joined the effort to ensure smooth fulfillment of the order.

The township's ability to handle a billion-yuan order is fueled by the united efforts of SMEs along the industrial chain and the policy support strengthening key industries.

Currently, more than 90 percent of private enterprises in China are SMEs. This year, a range of supportive policies have been rolled out, covering macroeconomic measures, financial assistance, industry support, and tailored services, to help SMEs achieve high-quality development.

The National Development and Reform Commission (NDRC) recently announced plans to remove market access barriers for private enterprises, ensure fair private sector access to the competitive infrastructure sector, and address financing challenges faced by these businesses.

The Ministry of Industry and Information Technology will improve the four-tier public service system spanning county, municipal, provincial, and national levels, help 40,000 SMEs achieve digital transformation by 2026, and support over 5,000 "little giant" SMEs that use special and sophisticated technologies to produce novel and unique products in achieving high-quality growth by 2026.