China's massive toy industry is racing toward a high-tech, novelty-driven future.
But as new AI pals and collectible boxes fly off the shelves, regulators have hit the brakes with tougher national safety standards.
We'll look at what happens when rapid innovation meets a renewed push for safety toy-wise.
We're live from Beijing.
This is Roundtable.
I'm Steve.
Thanks very much for being with us today.
And for the show.
I'm with Yushun and Yushan up first.
From ai powered companions and trendy blind boxes to classic building blocks and cuddly plush toys, china's toy industry is booming like never before.
But are they keeping up when it comes to safety, with the market expanding at full speed?
China's ministry of industry and information technology has stepped in rolling out tougher, updated national safety standards for toys.
So what does this mean for the kids out there, and also the parents who take care of those kids and the companies racing to innovate the toys that those kids play with?
Can stricter rules actually fuel better, more creative toys?
We're going to talk about it today.
Yushan and Yushan, good afternoon to you both.
But just thinking about toys and what I used to play with when I was a kid, they're just really really different.
Now, I often feel like kids have it so good. now with the toys that they get to play with.
Yeah, you cannot imagine how diverse their toys can be right now.
I feel like my childhood was so boring when I see the kids' toys that they play with these days.
And that is why now we have these new regulations.
The Ministry of Industry and Information Technology recently revised and strengthened four mandatory national toy standards covering toy safety.
The updated standards have been now officially approved and released by the state administration for market regulation.
So what's new then?
Yeah, on the health front, revised standards introduce stricter limits on 10 categories of harmful substances, basically chemicals.
And this significantly expands the range of chemical risks being regulated, helping to address real-world scenarios like kids putting toys in their mouths, something some sometimes they just they don't know what it is and they just like to put things in their mouth yeah that's that's being a baby right being a kid and then sometimes rubbing them on the skin or being exposed over long periods of play yeah i was just about to say sorry for interrupting earlier that kids nowadays they play something called slime and it's very popular both in china and abroad They have another name which is quite vivid.
Crystal mud?
Fake water. because it's just so squishy and just and transparent and just like water and wow i watched some videos i really want to play so yeah but the the i guess the chemicals in some of those types of toys it's not good at all it contains something called voc the volatile organic compounds which is a type of chemical compound that combines boron a natural element with other substances like acids or minerals that if put at the standard amount is safe and it's good for keeping the shape in a very flexible way, whichever way you squeeze it, that's, I guess, what you're after in trying to purchase them.
But usually, when it's put in the you know a large amount in order for it to be even more shape-shifting and cooler in hand, then that's where it gets dangerous.
And for kids it can easily cause problems like vomiting or irritations on the skin and in the eyes, and sometimes even long-term influences like on their neurological development and more so that's really dangerous for these type of toys.
Yeah, speaking of skin irritation, there is another category for kids.
That is toy cosmetics.
You know, items like eyeshadow blush, glitter sets are often like mistaken for real makeup.
In many cases, these products contain substances that are not safe for human skin because they are labeled as non-trojan cosmetics or just simply only for toy use.
But sometimes kids will just actually use them as cosmetics.
And then long time of exposure to skin, then that could cause a lot of problems.
So that's on the chemical side of things.
What about on the physical safety side in the design of these toys themselves?
Yeah on that.
The standard also cover more product types and risks in order to make them safer for kids to play.
And new technical requirements have been added for toys with open flames and food shaped designs.
So you might wonder what kind of toys might include open flame yeah like a stove yes remember those like i'm not sure if it's on tiktok but certainly on red no that you see people cooking like actually cook with mini stove mini cutting board mini knife mini pot mini spatula yeah one netizen was saying that i just wasted maybe like 10 to 20 eggs on this toy because my child just want to play with oh really but these things actually create an open flame Yeah, it's powered by either candles, small flames, or by electricity.
Both can put the entire set on fire risk or burning.
There are a lot of burning cases because of that.
There was a toy that was popular.
I even remember the TV commercials for it many, many, many years ago when I was growing up.
It was called the Easy Bake Oven.
And it was the same kind of thing.
It was for young kids who were interested in cooking or things like that.
And the bulbs, I think, turned out to be quite dangerous.
And then yeah, it's an oven, so kids could easily get their hands stuck in there when it was turned on.
It just turned out to be a really, really bad idea.
And similar for food-shaped designs, because there are a lot of just things for kids to bite on the fake ice cream, pretend pancakes or fruit-shaped items.
So it's really important what material they're made into.
So that's covered in the new regulation too.
It needs to be non-toxic material.
Yeah, because a kid could easily mistake a toy ice cream cone, for example, as a real ice cream cone and put it in their mouth and suck on it and ingest some of the stuff on the surface.
Exactly.
Also on the size too.
It can easily break apart into smaller pieces so that kids may swallow it and choke on it.
And another toy that I would like to mention is that now they have just so many cheaper and smaller versions of some very expensive sets.
That one is the wax seal stamp set.
What's that?
You know, when people are like sending letters in the 19th century, that wax stamp.
Yeah.
To to seal the letter.
Right.
And then now kids have that cheaper version and they can get a whole set.
And then the kids.
You just melt the wax and use it for maybe sealing envelopes or just some homework.
I don't know, but it can be really, really dangerous because they really need to like melt it.
And that can reach the temperature to around like 128 degrees Celsius because they have that special equipment for that wax melting thing.
Yeah.
I mean, they could burn themselves melting it or they could easily eat that too.
Oh yeah.
Homework.
That's a very official piece of homework, put it on a wax melting thing.
One more important update here, and it's about fire safety as well.
These new standards will introduce flame retardant requirements for Some toys, like masks, things that will go on children's heads or near their faces, and also improve testing methods for the items, such as toy costumes.
Again, things that kids wear, tents that children can crawl into and some soft stuff toys, too.
Yeah, if a child like fall asleep with a large stuffed animal near a plug-in, let's say nightlight or a heater.
These improved testing methods ensure that the toy's materials meet much higher safety criteria too prevent it from smoldering or catching fire.
So those are some of the changes in the regulations, but the changes that will take place.
There is a grace period for the companies, for the producers of these toys, in order for them to adjust and figure out the new rules.
Right.
About 12 months.
That's the production transition period between the release of the revised standards and their formal implementation, which is on November, the 1st this year, 2026.
And during this time, the manufacturers are given breathing room to refine, or rather fine tune, their production lines and upgrade processes and adjust supply chains to meet the new technical requirements.
So it's not really a one cut and immediately for all kind of standard we're talking about.
There is a time, for you know, for people and manufacturers and companies to upgrade their technology so that the future products are safer for kids.
So that's 12 months for the production transition, but there's also a 12-month grace period for sales transition as well.
And that's for inventory that's made under the old standards.
That'll give companies a chance to sell those, just so it can make sure the companies can make sure that their existing stock can be phased out of the market.
All right, so why these changes now?
I mean, China has built what is probably the most complete and efficient toy industry supply chain and that allows it to get toys that and produce toys that really strike a balance between quality and affordability to consumers here in China and internationally as well.
Yeah, and we're now at the point to really deliver toys and make sure that we prioritize product quality as we step into the next phase of development.
Because if you look back into 2024, the toy retail sales here in the Chinese market really hit pretty impressively.
It reached nearly 98 billion yuan, or roughly 14 billion US dollars, marking a 255 increase, and that's compared with 2020.
And exports were also just as impressive, totaling almost 40 billion US dollars, and that's up nearly 20 from 2020, with more than 40 of those products shipped to the US and EU markets.
Ah, the EU market.
Yeah, we're going to get to that a little bit later.
So then there's growth in the industry.
And then therefore, new standards were needed, because I guess the old standards were updated.
When were the old standards put into place?
Yeah, the first release of the standards or regulation that we're mentioning is the GB6675 series of standards, and it can date back to even 1986.
It was subsequently revised in 2003 and 2014, with the most recent version that we're talking about right now is released on October, the 5th 2025.
So this GB675 series is divided into several specific mandatory sections that cover different aspects of safety.
And we actually just mentioned it.
The general principles and requirements mechanical and physical properties, flammability and fire safety, and also chemical safety.
So these things are mentioned and also revised for several times alongside the whole development of the toy industry and also this regulation.
I guess toys... are changing so fast now.
Yes.
And this has to be probably the biggest reason.
Yes, you could say that the old standards were outdated, and that would be true, but the reason they're outdated is because toys are just so much more advanced now and so much more complex than they used to be.
Yeah, if you look at when this whole series of toy safety standards were updated last time, which was over 10 years ago, back in 2014, you can see, just over this past decade, there are many things happening in the toy market new materials, new technologies, even more creative designs coming into the entire market.
And also that's really a good time that we have this new safety standards to combat all the safety risks that have started to emerge in recent years.
So the technical requirements in the previous standards needed an upgrade, and it is now that we have this upgrade to be applied soon this year.
Yeah, and it's not just China.
As you mentioned before, the EU is also upgrading their standards.
I guess the changes to the European Union standards are somewhat similar to the changes taking place here in China.
Yeah, actually.
Recently the European Parliament gave the green light to some much tougher toy safety rules to keep kids safe, especially with how much we shop online these days.
These new regulations are replacing the old 2009 directive and the goal is to close the gaps created by digital tech and also cross-border e-commerce.
Yeah, it's really interesting, isn't it?
Because, despite the EU having some of the world's strictest, like most serious rules on toy safety, there are still dangerous toys finding their way into children's hand, and the update there in the EU is a response to the rise in online shopping and the use of digital technologies.
And all toys placed on the EU market must carry what they call a digital product passport, DTP.
And that's improving traceability and enabling more efficient customs and market surveillance checks.
And also for online marketplace.
They must ensure a CE marking, which is The French for European conformity, meaning that the manufacturer takes responsibility for the compliance of a product with all applicable European standards.
European health, safety, performance, and environmental requirements.
So you need to have that mark there with your product, and also a lot of other things, in order to have the product into the EU market.
Yeah, and it makes sense, not just for the EU market, but any market.
And I thought you brought up a great point there Yushan, when you said one of the reasons for the change there in the EU is that Many people buy their toys online now and that means that they will get shipped from other parts of the world.
And when they come through customs into the EU or into your country, then you want to make sure that the standards of your country are being met with those toys.
I mean, a long time ago, there was no online shopping.
And so you were guaranteed that, when you took your kid to the toy store, that the standards that were put in place in that particular country were being met.
But now, with the world a lot smaller, we have to make sure that those standards are being met on a global scale.
And it is more a kind of a comprehensive safety homework for makers, because manufacturers cannot just do a quick check anymore.
They now have to conduct deep safety assessments that look at everything like chemical mechanical, electrical and physical hazards, and they even have to try check for hygiene, radioactivity and any risks that come with digital features.
And another thing I would like to mention is that now toys are trying to offer multi-dimensional pleasure to the owner.
What do you mean?
That means that fragrance is also a new aspect that we need to consider.
Yeah, so the new rules are also very specific about scents.
They are banning allergenic fragrances in toys designed for children under three years old, as well as in any toy that is meant to be mouthed.
So let's say, a scented scratch and sniff book or a fruit-scented building block for a one-year-old will be heavily restricted to ensure those added fragrances don't trigger allergic reactions or skin issues.
Yeah, I mean, they're really doing their best to think of everything possible.
Sorry to interrupt but I was going to say but we haven't even mentioned AI yet and the use of AI yet.
In toys, that's a whole other list of issues to deal with.
Yeah, I mean AI toys.
They are something that we see in cartoons decades ago or just a few years ago.
But now AI toys are becoming real.
They are chatbots that are embedded in everyday toys, children's toys, like toys plushies dolls, action figures or kids' robots.
And they use artificial intelligence technology that's designed to communicate like a trusted friend with the kids and mimic human characteristics and even emotions.
And one example that I found really cute was showcased at the CES 2026
It's by Yuan Dian Intelligence, under Lei Xiang Technology that they came up with this AI version of Wall-E.
Does this name ring a bell?
Wall-E.
The robot?
Yeah, Disney robot.
Wall-E.
They actually...
Not bad, right?
Not bad indeed.
That's a little robot that was cleaning up garbage on Earth.
It's from a Pixar film, I believe.
Yeah, in collaboration with Disney, I believe.
Because this company.
They are in coming up with an interactive robot officially licensed under disney's ip from wally.
So this robot, it can not only simulate emotional interactions, but also take photos during outdoor camping and play music for you.
It's sold at a very unpleasant price for now for a toy that's 40 000 yuan, but still it's a very very, um real looking wally We talked about too when we were talking about CES Yuxin, the Lego bricks.
Yeah.
They make noises.
They're sensors that know if they're being moved or something like that.
They've got chips and sensors that detect the movements that you're playing with it.
Tech-filled versions of small building blocks.
And they say that when you're having different little figurines to come close with it, they can trigger different sound effects or music and theme music when you're playing with different sets of building blocks.
Of course, they're like, I think, innovating in the way that they've been used for so many years.
That's why I said kids have it so good now.
I mean, even the Legos are better than they used to be.
The AI toy market size is valued at almost $50 million.
It was in 2024.
It's projected to grow from 53 million this year to 91 million by 2032, with a pretty significant growth rate there, almost 10.
And I think it's pretty easy to find some of the benefits of AI toys they can provide.
And this isn't supposedly just for children.
We've talked about the benefits of AI companion toys, pets for the elderly as well.
We've discussed the educational benefits that AI can provide in a toy or the developmental benefits to children.
Um, so there's a lot to to say for these ai toys, but since we are talking about safety today are there and i have to assume that there are challenges and risks or safety concerns that come along with ai toys too.
Definitely there's.
Whenever we speak about something ai integrated, there's always the data and privacy risks, because Many AI toys, like the Wall-E one I mentioned earlier, they use microphones, cameras and sensors to listen to quote-unquote.
See, in order to respond to you.
And they may record the children's voices, faces, habits, or locations.
That data they might be stored in the cloud, shared with third parties or poorly protected in the first place.
Privacy concerns, as we always talk about.
Okay, but there must be more beyond the privacy concerns.
Of course.
And since we're mentioning a lot of these toys, they can react simultaneously and they just react to the speech and everything.
The movement right.
And that means that they will have that kind of artificial brain and that can detect and understand.
So sometimes, when the output is based on the internet and then the bad advice or inappropriate content could be one of the issues, because one of the scariest concern is when the AI safety filter fail because many AI toys, just you know, plugging to their like general large language models, like chai jpt, they don't always realize that they're just talking to a child.
Researchers also found that an ai teddy bear named kuma, i would say, could be prompted to discuss some very inappropriate, even sexual fetish, or gave a child detailed steps on how to light a match.
Oh, goodness.
Yeah.
So some of these incidents should be monitored or people have to consider this.
And many toys have these kind of bad guidance where they give incorrect or even dangerous answers because they lack that kind of safety filters specifically trained for kids.
Sometimes it's not that scary.
AI toys, they still have a very promising market.
And some AI toys are made designed by global companies and they might not account for local cultural norms or values once they are imported into other countries.
Oh, that's a good point.
I found some interesting cases like where, once imported into China, those AI toys speak about Santa Claus, speak about trick or treat for Halloween, where Chinese kids we have no idea as a five-year-old four-year-old if we're not lectured or told about what Santa Claus is, who it is.
Sorry.
Who is this old fat man with the beard?
Precisely.
And that's just like a small, minor issue.
What about something that's deemed to be okay in one culture, but perhaps more aggressive in another culture?
That's Another case, too.
So these are all uncertainties about AI toys that we really need to look into.
Okay, so actions are in place now.
Recommendations are in place.
Rule changes are in place.
And now people are doing things to make sure that things get safer.
Are there examples of those?
Hmm.
Government agencies are now officially recognizing AI toys as a major racetrack for the economy, which means that they're starting to provide real oversight.
Six different departments in China, including the Ministry of Industry and Information Technology, recently launched an implementation plan specifically to encourage the development of smart products like AI toys that provide health care and entertainment, instead of just random gadgets popping up.
This plan encourages the creation of home service robots and AI toys that can actually help people with their daily lives, moving the focus from just cheap distractions to useful tools.
So, and also some of these tech companies, tech giants are collaborating with these toy manufacturers to make them have a stronger brain.
And then with the filters, and we are seeing like Baidu has created professional toy large models that can actually help traditional toy makers lower the technical barrier, ensuring that AI isn't just a generic chatbot but is specifically tuned to be safe and helpful for a child or an elderly person.
Yeah, because if it's going to be in use which it obviously is going to be in use then you have to make sure that it's doing its job in the best and safest way possible.
Toys are totally different now.
Can you remember a toy that you used to play with when you were a kid that might be considered dangerous now, or maybe unacceptable now?
I got one.
That is the one that actually looks like a toothpaste, a small tube of toothpaste, but it's in the form of a bubble gum.
You can squeeze it out and it looks like a bubble gum and you can stick a straw into it and blow it to a huge balloon.
Why was that dangerous?
The thing is that it is really smelly with that kind of chemical smell.
Yeah, you breathe into it.
Sometimes you just, you know, you don't know how to do with the straw, right?
You would know whether it's blow it or just suck it and then just...
You may just choke with that bubble.
Inhaling those chemicals.
There's one case that I personally didn't play much with, but I've seen my classmates back in primary school that's actively playing it.
That's the magnetic beats or like stones.
Oh, I was looking at the.
You know, if you go on the internet and search like the most dangerous toys ever, that's on the list.
They're very dangerous because there are so many cases of young kids being brought to the hospital with.
They say it feels like stomach pain and vomiting.
That's because they swallow dozens of those bees and they they're magnetic.
So they're attached inside your body, inside your gut.
Yeah.
And that's like piercing holes inside you.
And that's. really dangerous and it's been reported multiple times for years here in the chinese market i didn't know that it has such a huge impact outside of china too i remember playing with as a kid and it was so much fun uh we had a game called lawn darts that you would play do you know what i'm talking about okay so you know like a dart board yeah you play inside right those darts are little tiny things you hold them in your fingers these things can be dangerous already yeah well yeah right lawn darts though you play outside lawn l-a-w-n so the front yard or backyard of your house what you do is you put a ring on the ground and then your friends stand you and your friends stand a distance away and you both have these lawn darts now these lawn darts are quite heavy they're they're basically the same shape as a real dart except they're much much much bigger And the goal is you toss them underhand and they go up in the air and then they come down and they're supposed to land in the ring.
These things are basically missiles with sharp ends.
And children don't know how to handle those things properly.
So it's super easy to see how kids would get injured with those.
I used to love that game when I was a kid.
It was super fun, but also...
It should have been banned for sure when I was a kid.
Yeah.
Well, as I said and as we've been talking about, toys are different now and toys are constantly evolving and changing and getting more fun to play with.
But as toys do evolve and change and become more fun to play with, new rules are needed for the manufacturers so that those kids can stay safe.
That is for sure.
