BBC NEWS "China toy firm closure"

A Chinese toymaker which supplied firms including US giant Mattel has gone out of business with the loss of up to 7,000 jobs.
Rising raw material and labour costs and slowing US demand forced Smart Union to close its doors this week.
Workers have since been protesting outside the firm's factories and a government building in Guangdong province to demand their unpaid wages.
More than half of China's toy exporters have gone bust so far this year.
Hard times in Toytown
The Chinese news agency Xinhua said 52.7% of the country's 3,631 companies making toys for export went out of business in the first seven months of the year.
It blamed rising production costs, the stronger yuan and tightened toy safety standards.
Smart Union's shares were suspended on the Hong Kong exchange on Wednesday and provisional liquidators were appointed by the High Court in Hong Kong on Friday.
The company's financial difficulties were clear from the results it released last month - Smart Union made a pre-tax loss of 201m Hong Kong dollars ($26m; £15m) in the first half of the year. In the same period a year earlier it had lost HK $2.5m.
Pay withheld
Former staff protesting outside one of Smart Union's factories were met with a sign which read, "Because business is bad, we are unable to give you your salaries," the Reuters news agency reported.
"I feel very agitated now," said factory worker Huang Luo Hui.
"We need money to pay for our housing and food. We have been waiting for a few days now. The government said they will solve this problem in three days. Today [Friday] is the third day and we have had no reply from them."

Discussion:
Many companies put there factories in China, or let factories which are in China produce and supply produce products. Because in China labour and raw material are very cheap. So build factories in China can reduce costs. Maybe that’s why many products here are made in China. So the factories in China only get little money for producing products. Companies which are from other countries keep the most of profit.
But as the rising of raw material and labour costs, the owner of factories in China realize that only produce products can’t make a lot of profit. And also as the exchange rate of yuan going higher and raw material costs rising, producing products in China will be more expensive.
Many people said that many business in China just copy. That’s true. But nowadays we realize that copy is not a good idea because copy can only make a little profit, because most profit is given by companies which are have patent. So Chinese government begin to encourage independent innovation. And also Chinese government and bank of China will support small businesses. But in the short term, many factories in China will still keep copying. As the developing of China and more and more people join in independent innovation, the business in China will change a lot.