"The coming two years are the most difficult time for China's toy industry", Li Zhuoming, vice-chairman of the Guangdong Toy Industry Association, said yesterday. Toys will be exhibited at the second phase of the China Export and Import Fair (Canton Fair). Insiders predict that turnover will keep at regular levels but still face a certain stress. A transformer toy at a booth in Pazhou Complex (Guangzhou Daily) Toy makers are facing new threats like rising costs, increasing technical barriers to trade with European and American countries and processing policy adjustment. The biggest toy consumer in the world, U.S. has reduced purchases due to a credit crisis. Guangdong province accounts for 70% of China's toy manufacturing. Exports have witnessed a 43.5% increase in the first two months of 2008. However, many toy factories have moved outside the province to regions with lower employment costs. The spring of China's toy industry will arrive two years later, Li claimed. "Guangdong still has advantages in the industry. No countries can match China in the industry over the coming three to five years. The most important thing is to add additional value to the products and create self brands", Li added.