Toy Wars!

In the current economy, it seems like pretty much every country is becoming a bit more protectionist in terms of their trade policies, but many Chinese feel that India/st1 :country-region>'s recent ban on Chinese toy imports goes a little too far. /span>

On January 23, India/st1 :country-region> instituted a six-month ban on all Chinese toys on the grounds that it's "in the public interest."  Not surprisingly, this sentiment did not go over well with Chinese leadership.  /span>

Fu Donghui, a Chinese lawyer, told China Daily that the ban "cannot hold water.  The Indian side is doomed to lose in the court if the Chinese government appealed to the WTO (World Trade Organization) Dispute Settlement Body," on account of the trade restrictions.  Despite India/st1 :country-region>'s claims that these toy bans are just for "public health and safety," the fact that no other country is instituting similar bans on Chinese toys seems a bit suspect./span>

It's likely that Chinawill bring this case before the WTO, and even though the Indian government maintains that it’s fully compliant with international regulations, Chinacould potentially have a strong case if India/st1 :country-region> doesn't present a strongly compelling argument as to why the Chinese toys are a health hazard./span>

Indiaspan style="font-size: 7pt; font-family: Arial"> could point to the multiple toy recalls from China/st1 :place> in 2007, but considering that billions of dollars in toys were safely exported in 2008, the timing of this Indian toy ban is pretty unique.  Although the Indian toy industry has had difficulty competing with China last year China/st1 :country-region>'s toy industry also suffered some extensive setbacks, with nearly 1,000 toy exporters having to shut down their factories, leaving tens of thousands without jobs./span>

It's likely that Chinawill take this case before the WTO, but even if it doesn't, I wouldn't be surprised if Chinaretaliates against India/st1 :country-region>'s toy ban in another way./span>