Bottlenecks in Toyland

New inspections are slowing shipments and clipping profits for Chinese suppliers

As Beijing cracks down on unsafe toy exports and demands more testing, many small toy producers in China are feeling a financial squeeze. The increased testing "has created real havoc for some...manufacturers" in China, says Ron Rycek, vice-president of toy sales at Hilco Corp., which sells toys such as Sonic Skillball to Toys R' Us and Amazon.com (AMZN).

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