Five weeks after the Indian government announced its ban on Chinese toy imports, New Delhi has decided to relax the ban as of March 2. India's trade ministry said Chinese toys can be imported, but they need to be certified as safe by recognized international standards, such as the International Organization for Standardization (ISO) or the American Society for Testing and Materials (ASTM).

The ban of Chinese-made toys intended to bar imports for six months for "public health and safety" reasons. Beijing's warning that the move could seriously jeopardize bilateral trade ties seems to have worked, industry insiders said.

China's Minister of Commerce Chen Deming told the press that Beijing dispatched a vice minister of commerce to India to discuss the toy ban.

Meantime, Indian newspapers reported that toy prices in India soared 30-100 percent under the ban as local supply failed to meet market demand.

The trade tension between the two emerging economic powers has escalated in recent months as India raised a series of trade barriers and investigations. It is difficult to predict whether the toy ban's cancellation bodes well for the ongoing anti-dumping case of Chinese injection molding machines.