Published by ChinaMNC · guangdong

Shantou Chenghai Toy Expo: What Foreign Founders Should Know About China's AI Toy Supply Chain

The 25th Shantou Chenghai International Toy and Gift Expo highlights Chenghai's role as a global toy manufacturing hub, with over 2,500 brands and buyers from 55 countries. For foreign founders, this signals opportunities in AI toys, digital manufacturing, and cross-border e-commerce.

Shantou Chenghai Toy Expo: A Gateway for Foreign Founders

The 25th Shantou Chenghai International Toy and Gift Expo opened on October 29 in Shantou, Guangdong, under the theme "Guangdong Goods Go Global, Toys Sell Worldwide." The event, running until November 1, brings together over 2,500 brands and buyers from 55 countries and regions. For foreign founders considering setting up operations in China, this expo offers a window into the world's most complete toy supply chain and emerging opportunities in AI-enhanced toys.

Chenghai: A Toy Manufacturing Powerhouse

Chenghai, a district in Shantou covering less than 400 square kilometers, hosts 68,000 toy enterprises and 200,000 workers. The cluster spans design and R&D, IP licensing, mold making, packaging, and logistics. It produces new products in three days and develops over 1,000 new designs daily. The district leads the nation in toy brand ownership, IP licenses, and patents. Globally, one in every three plastic toys comes from Chenghai. In 2025, the 50th anniversary of its toy industry, Chenghai's toy output value exceeded 50 billion yuan, with products sold to over 170 countries and regions.

Digital and Intelligent Manufacturing

Chenghai's factories are increasingly automated. Gaodes Precision Technology operates a "lights-out" factory with mold precision of 0.005 mm, producing over 10 billion building blocks annually. Dexin Mold Steel has flexible automated lines producing over 350,000 mold bases per year, enabling same-day mold modifications and trial production. Weida Intelligent's smart injection molding plant automates everything from order scheduling to central feeding, injection molding, quality inspection, and warehousing. Over 100 enterprises in Chenghai have undergone digital transformation, boosting efficiency by 30% on average. More than 300,000 injection molding machines and over 2,000 printing and packaging companies support the cluster, with over 75% of above-scale enterprises having completed digital upgrades.

AI and Smart Toys

Product innovation is accelerating. Alpha Group's "AI Smart Fun Goat" deeply restores character personalities, while Sunwing's AI companion toys, powered by the Doubao large model, can chat, tell stories, and share knowledge. In 2025, Shantou launched the "AI+Token Empowerment Toy Industry Action Plan," leveraging international submarine cable nodes and a compliant token export channel to enable AI toys with "computing power retained domestically, services exported." This means Chenghai exports not just physical goods but a sustainable digital service chain, offering low-cost, low-latency, compliant cross-border AI computing power for smart toys.

Export Performance and Market Reach

In 2025, Chenghai's toy exports (including new formats) reached 9.772 billion yuan, accounting for 70.35% of the district's total exports. Major markets include Europe and America (45%), Southeast Asia (28%), and the Middle East and Latin America (27%). The expo attracted buyers from 55 countries and regions, including 13 APEC economies, with 5,000 overseas clients invited. Chenghai is deepening its "cross-border e-commerce + industrial belt" pilot, having introduced Alibaba's first national toy selection center, and expanded channels on Amazon and TikTok Shop.

Online Platforms and Supply Chain Efficiency

Xiaoniaoyun AI 4.0's "Cloud Exhibition Hall" platform is set to launch, providing year-round online display, supply-demand matching, and negotiation services. It already aggregates over 50,000 enterprises and 5.68 million products, serving more than 170 countries. According to the platform, AI matching accuracy exceeds 90%, reducing operating costs by 10% and improving transaction efficiency by 20%, facilitating over 90 billion yuan in toy exports cumulatively.

Guangdong's Toy Industry Ecosystem

Guangdong boasts the most complete toy ecosystem, from IP R&D to precision manufacturing and logistics. In 2025, the province had 898 above-scale toy manufacturers (up 4.7% year-on-year), with revenue of 79.527 billion yuan (up 1%). Toy exports reached 89.66 billion yuan, 36% of the national total, ranking first. The province has a "three pillars" structure: Shantou (Chenghai) leads in complete supply chains and brand ownership; Dongguan, known as "China's Trendy Toy Capital," hosts over 4,000 toy makers and nearly 1,500 supporting firms; Shenzhen, with its AI chip and algorithm ecosystem, is transforming into an "AI Toy Silicon Valley." Guangdong has launched an action plan for AI empowerment and a "Toys Made in Guangdong, Billion-Dollar Global Journey" campaign, covering large models, chips, and standards.

Practical Implications for Foreign Founders

For foreign entrepreneurs, Chenghai offers a mature manufacturing base with rapid prototyping, digital transformation, and growing AI capabilities. The expo and online platforms provide direct access to suppliers and buyers. Setting up a company in China, particularly in Guangdong, can facilitate sourcing, quality control, and integration into cross-border e-commerce. However, founders should navigate registration, tax, and compliance carefully. Working with local experts can streamline the process.

Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.