US toys may face 'price shocks'

Rising costs in sourcing raw materials from the mainland to dent fortunes of firms

For Jason Cheung, who owns a 40-year-old family business that makes educational toys, it is difficult to imagine moving production out of China, where his company has manufactured its products since the firm's founding.

"Although the price of manufacturing in China has risen in the past four decades, China is now able to produce the quality that we need and still at a lot more reasonable price versus Vietnam and many other countries," said Cheung, president of the California-based Popular Playthings.