China experienced a slight slowdown in growth of its toy exports in the first quarter of this year, partly because of expediated appreciation of its currency and mounting production cost.

Between January and March, China exported 4.2 billion U.S. dollars worth of toys, a growth of 20.7% percent on the same period of last year, according to sources with the General Administration of Customs. The growth rate was about 7 percentage points lower than the year-earlier level, the sources added.

Growing quality concern was another factor behind the slight slowdown. Quality issues gave China's toy industry some tough times during the second half of 2007. Some export countries raised quality standards and issued several recalls on Chinese toys. One company affected was giant Mattel, which recalled more than 18 million toys last August, which were later traced to its design flaws. China conducted special campaigns to improve toy quality and banned many unqualified companies from exporting. Export toys safety has been enhanced greately.