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India bans Chinese toys

In response to a ban the Indian government slapped on Chinese toys for the next six months, an unnamed Chinese official from the Ministry of Commerce told media that China will actively pursue the issue.

New Delhi said on January 23 that the reason for the ban is a concern for public health, as Chinese toys were found to contain higher levels of lead than Indian-made toys in tests. Ironically, India doesn't actually have any official safety standard for toys, regardless of their origin.

Critics in Asia have pointed out that the ban is a means to protect domestic manufacturers against cheap competition.

Raj Kumar, president of the 13-year-old Toy Association of India (TAI), which represents 600 toy industry members, told the Asia Times that "We don't know the reason for the ban, and our trade association is having various meetings to decide on the issue. ... We cannot say right now whether we are happy or unhappy about the ban on Chinese toy imports."

However, Indian toy makers' stock shares soared after the ban was announced; while Chinese toy exporters reported that their shipments to India that left China before the ban have been declined.

The official from China's Ministry of Commerce stated that Beijing may turn to the Dispute Settlement Body of the World Trade Organization.

Chinese critics warned that as the global recession deepens, protectionism and trade barriers may make a comeback in some countries.

The vice president of Beijing-based China Toys Association noted: "Although India is not a major export destination for Chinese toys, the ban will cause some impact, especially negative impact on the industry's morale."

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