China has added 11 U.S. firms, including Skydio and BRINC Drones, to its unreliable entity list, the Ministry of Commerce (MOC) announced on Friday.
These companies, in disregard of strong opposition from China, have undertaken so-called military technology cooperation with Taiwan, seriously undermining China's national sovereignty, security and development interests, a MOC spokesperson said in a statement.
China holds the 11 firms accountable for their unlawful activities in accordance with relevant laws and regulations, according to the statement.
China always handles issues related to its unreliable entity list prudently, and only targets the very few foreign entities that undermine China's national security, the spokesperson said.
"There is nothing to worry about for honest and law-abiding foreign entities," said the spokesperson.
The Chinese government, as always, welcomes companies from all countries to invest and operate in China, and is committed to providing a stable, fair and predictable business environment for foreign enterprises that operate in accordance with laws and regulations, said the spokesperson.
China adds 11 US firms to unreliable entity list
China adds 11 US firms to unreliable entity list
China adds 11 US firms to unreliable entity list
China adds 11 US firms to unreliable entity list
Despite U.S. tariff hikes, toy manufacturers in Dongguan, a global toy manufacturing hub in south China, are demonstrating remarkable resilience through unique product offerings and strategic market expansion beyond the American market to other countries.
Dongguan is home to over 4,000 manufacturers and nearly 1,500 supporting enterprises in the designer toy industry, producing nearly 85 percent of China's designer toys and a quarter of the global animation-related merchandise.
Piececool, a Dongguan-based toy brand specializing in premium 3D metal puzzles, maintains resilience against U.S. tariff hikes through its distinctive craftsmanship and incorporation of Chinese cultural elements, which have cultivated a loyal global customer base.
"We build our products around traditional Chinese themes. Overseas, we're proud to be known simply as 'a Chinese brand.' As soon as people see our puzzles, they know they're getting something made in China," said Xiong Mao, general manager of Dongguan Weishi Culture Technology Co., Ltd., the parent company of Piececool.
Xiong said that the U.S. market for his company remains steady thanks to their unique product offerings as the majority of their consumers prioritize quality over cost and are willing to invest in premium products.
"Our share of the U.S. market hasn't been hit much. First, our products are protected by our own intellectual property and branding. And second, there really isn't anything else like them that customers could switch to," he said.
Jollybaby, a Dongguan-based toy manufacturer, is among China's top exporters of soft baby books. Facing challenges from U.S. tariffs, the company has restructured its approach to penetrate markets in Europe and Southeast Asia.
"Besides Russia, we work with agents in South Korea and Japan. Combined, those markets far exceed our sales in the U.S.," said Long Lin, deputy general manager of Jollybaby.
Beyond exports, Jollybaby now views China's domestic market as another key focus. In April alone, Chinese e-commerce giant JD.com placed an order worth 50 million yuan (around 6.9 million US dollars) and committed to distribute 1 million of the company's soft baby books, completing its transition from exports to domestic sales within just 72 hours.
"We were the first to benefit. JD.com approached us immediately -- they understood our inventory situation, put the traffic behind our products, and labeled them as 'export to domestic for shoppers," Long said.
"As a major trading city and manufacturing hub, changes in the external environment inevitably affect us. We know better than to put all our eggs in one basket -- diversifying markets is our top priority. Beyond the Belt and Road partner countries, we're expanding trade with RCEP members, Africa, South America, and other emerging markets, to build a more balanced and widespread market presence," said Huang Chaodong, deputy director general of the Dongguan Municipal Bureau of Commerce.
Chinese toymakers resilient to US tariffs with unique products, diversified markets
