Reporter: Jia Li
In the context of profound changes in the global toy market, China’s toy industry is riding a strong wave of “going global” empowered by artificial intelligence (AI) technology and innovations in traditional culture. According to reports from the Securities Daily, export orders for new types of toys, represented by AI toys and programming education, have surged significantly, with some companies’ orders already scheduled for production into the first quarter of next year, becoming a bright spot in foreign trade exports.
“This year, the trend of overseas customers ‘chasing new products’ is particularly evident, especially for toys that integrate AI functions, which are often snapped up by distributors as soon as they arrive at the port,” said Zhan Junyan, General Manager of Guangdong Qimeng Toy Industry Co., Ltd., in an interview with the Securities Daily. The export volume of AI smart pets and programming robots produced by the company has increased by over 200% year-on-year this year.
This is not an isolated phenomenon. In Chaozhou, the “Toy Capital” of Shantou, Guangdong, many toy companies are operating at full capacity. China is the world’s largest producer and exporter of toys, with Chaozhou in Shantou holding a 60% share of the global toy market. Huang Yixian, President of the Chaozhou Toy Association, told the Securities Daily that the export proportion of AI toys among large-scale toy enterprises in the area has increased from less than 10% last year to about 30% currently, reshaping the export structure of Chaozhou toys.
AI Toys Are Extremely Popular
“Our orders have been scheduled until March next year, and our biggest worry now is that production capacity cannot keep up with demand,” said a representative from Guangdong Weili Intelligent Technology Co., Ltd. in an interview with the Securities Daily. The company’s AI programming block robot series has been very popular in the European and American markets, with the monthly export container volume increasing from 20 at the beginning of the year to 50 currently.
AI large model toys have also carved out a niche in the market, boosting orders for related companies. A representative from Shenzhen Lanlang Innovation Technology Co., Ltd. told the Securities Daily that the company’s astronaut AI large model, embedded with DeepSeek, can build its own intelligent agent, and after the large model gained popularity, orders surged. AI educational and companion toys are the most popular, with overall orders for AI toys increasing by over 230% compared to the same period last year.
Since the beginning of this year, the outstanding performance of AI toys has continued. The “2025 China AI Toy Industry Development Report” indicates that in the first half of 2025, the domestic AI toy market sales will exceed 30 billion yuan, a year-on-year increase of 65%.
According to statistics from the General Administration of Customs, in the first three quarters of this year, China exported holiday supplies, dolls, and animal-shaped toys worth over 50 billion yuan to more than 200 countries and regions worldwide, many of which belong to the category of domestic products. In recent years, many domestic products have become global bestsellers, favored by overseas consumers, becoming a new highlight of China’s foreign trade exports.
In response to the surging market demand, toy companies are increasing their R&D investment and expanding production capacity.
“We are no longer satisfied with simple processing of samples; instead, we have formed our own AI algorithm team to develop differentiated interactive content for children of different age groups,” said Zhou Yu, Chairman of Guangzhou Xuandong Technology Co., Ltd. The company has expanded its AI toy production lines from 2 to 5 this year, with the proportion of R&D personnel increasing from 10% to 20%.
Recently, an agent at Yiwu International Trade City reported that the AI dinosaur toy “Baba Long” sold over 5,000 units in a single day, with orders continuously pouring in from Southeast Asia. He revealed, “The AI dinosaur series products achieved pre-sale amounts exceeding expectations on overseas crowdfunding platforms within a week of launch, and the production company is now ramping up mass production.”
Public Companies Deepen Their Layouts
The craze for AI toys has also driven the development of the entire industry chain, with related public companies increasing their investment.
A representative from Xinghui Interactive Entertainment Co., Ltd. told the Securities Daily that the company has positioned AI toys as a strategic development direction, launching multiple toy products that integrate AR technology and AI interaction this year.
AoFei Entertainment Co., Ltd. (hereinafter referred to as “AoFei Entertainment”) established a dedicated AI toy division this year and has set up joint laboratories with several universities. A person from AoFei Entertainment’s board secretary office revealed that the revenue proportion from AI toys is continuously increasing, and market demand is also growing, with the company accelerating the development of products in the AI + IP application sector.
Guangdong Gaole Co., Ltd. (hereinafter referred to as “Gaole Co.”) is accelerating its layout in AI toys through acquisitions. Gaole Co. stated that it is deepening its dual-line strategy of “toys + technology” by integrating IP resources and smart technology to promote business structure upgrades. The company has established business relationships with hundreds of customers in nearly a hundred countries and regions, facilitating rapid global distribution of its products.
Additionally, intelligent manufacturing companies are also penetrating the toy industry. Shenzhen UBTECH Technology Co., Ltd. has launched several AI educational robots aimed at overseas markets. A company representative stated that overseas sales are expected to achieve rapid growth this year.
Incorporating Chinese Cultural Elements
Notably, a significant characteristic of this year’s “going global” trend for AI toys is the innovative integration of traditional Chinese culture and intelligent technology.
In the Chaozhou toy industry belt, an AI smart mech that incorporates elements of Chinese martial arts has gone viral on overseas video platforms, with a single review video garnering over 5 million views, directly leading to the product selling out in the North American market.
“We programmed the moves of Chinese kung fu into the AI chip, allowing children to control the mech to perform different martial arts moves through gestures while learning simple Chinese commands during the interaction,” said the product designer in an interview with the Securities Daily. Cultural differences are no longer a barrier but rather a unique selling point of the product.
Wang Lei, a council member of the Chinese Association for Artificial Intelligence, told the Securities Daily that Chinese toy companies are transitioning from “manufacturing” to “intelligent manufacturing” by combining elements of traditional Chinese culture with new technologies like artificial intelligence, forming a unique international competitive advantage.
The rapid development of AI toys is driven by both policy support and technological breakthroughs.
In September 2025, the “Guangdong Province Action Plan for Accelerating the Empowerment of Artificial Intelligence in the Toy Industry (2025-2027)” was officially issued, which clearly states that by 2027, the province’s toy industry revenue will reach 100 billion yuan, with an AI toy penetration rate of over 30%, enhanced competitiveness of industrial clusters, and the cultivation of more than five internationally competitive leading AI toy enterprises in Shantou, Dongguan, Shenzhen, and other high-level toy industry clusters.
On the technological front, the maturity of technologies such as AI voice recognition, computer vision, and emotional computing has made innovation in smart toys possible. Wang Lei stated that China has advantages in the smart toy field, including a complete industrial chain, rapid market response, and strong manufacturing capabilities, but there is still room for improvement in core algorithms and chip design.
He believes that the rapid growth of AI toy exports is a microcosm of the transformation and upgrading of China’s manufacturing industry. From simple processing to intelligent creation, from OEM production to independent brands, the “going global” path of Chinese toys vividly reflects the shift from “Made in China” to “Intelligent Manufacturing in China.” Companies need to closely monitor changes in regulations regarding data security and artificial intelligence applications in various countries and prepare for compliance in advance.
With the arrival of the year-end shopping season, the export boom of AI toys is expected to continue. Industry analysts believe that more and more toy companies are beginning to plan new products for next year, with embodied intelligent toys and AI companion robots likely to become the next growth point.
In the wave of intelligentization in the global toy industry, Chinese toy companies are seizing the opportunity with keen market insight, rapid product iteration capabilities, and a complete industrial chain advantage, making “Intelligent Manufacturing in China” a new calling card in the international market.