Workers assemble wooden toys on a production line in Yunhe County, Zhejiang Province, on 31 August 2023 (XINHUA)

Yunhe County in Lishui City, southwestern Zhejiang Province, doesn’t have any Disney castles. Instead, it has built bridges to the world with wood. 

Known as “China’s town of wooden toys,” accounting for about 40 percent of the global wooden toy market, Yunhe’s story began with a small factory established in 1970. Today, it has grown into a distinctive industrial cluster with an annual output value exceeding 8 billion yuan ($1.15 billion), exporting products to 82 countries and regions. 

From traditional manufacturing to intelligent creation, and from children’s toys to companions for all ages, Yunhe’s transformation is not only a story of industrial upgrading but also an example of how China’s county-level economy has gone global. 

Beyond children’s toys 

The wooden toy industry in Yunhe began with traditional children’s toys but has since expanded far beyond a single category. Today, Yunhe’s wooden toy showrooms showcase the versatility of wood in countless forms. Visitors can see mortise-and-tenon puzzle toys imbued with Eastern philosophy, alongside stylish collectibles created in partnership with internationally renowned franchises like Marvel. There are educational building blocks that grow with children, as well as toys specifically designed for cognitive training among the elderly. 

Behind this all-age strategy lies a profound shift in the industrial logic. Ma Dafei, a second-generation toy entrepreneur who studied in the UK, chose to return to his hometown and expand into the “silver economy.” By working with institutions such as Xi’an Jiaotong University and Shaoxing 7th People’s Hospital, his team developed age-friendly wooden toys. These products have already entered elderly care institutions in countries including Japan, becoming tools for rehabilitation training and social companionship for older adults. 

At the same time, Yunhe’s wooden toy companies have established global sales networks through cross-border e-commerce platforms and their own websites, creating products tailored to the needs of different markets. Wei Qingchuan, general manager of Zhejiang Great Forest Arts & Crafts Co., Ltd., explained that local employees are hired to support operations, ensuring the products resonate with local consumers. Fuelled by both multi-generational appeal and globalisation, Yunhe’s wooden toys have evolved from OEM items marked “Made in China” into meaningful products that convey emotional connections and cultural expression. 

Overseas buyers visit a wooden toy product exhibition in Yunhe County, Zhejiang Province, on 11 November 2023 (XINHUA) 

Manufacturing upgrading  

In the intelligent workshop of Jincheng Wood Industry Co., Ltd., robotic arms spray paint with precision, while digital systems monitor the entire production process in real time. Paint spraying that once required 15 people working in three shifts is now handled by just three robots. This intelligent transformation has significantly improved production efficiency while also creating a better working environment. 

Intelligent manufacturing is not a simple replacement of tradition but a way to further liberate craftsmanship. Veteran artisans have been freed from repetitive labour and can devote more energy to design supervision, process improvement, and the control of complex procedures. Yunhe’s wooden toy industry is building an “industrial brain” platform to achieve full-chain digitalisation from design and production to sales, equipping traditional manufacturing with a smart engine. 

Yunhe’s industry growth is accompanied by a quiet “green revolution.” To meet international environmental standards, the entire wooden toy sector has shifted from oil-based paint to water-based alternatives, achieving environmental performance that exceeds European Union benchmarks. This transformation addresses global consumers’ concerns about health and safety, establishes a strong foundation for sustainable development, and showcases the determination and capability of Chinese manufacturing to compete at world-class quality levels. 

Global cultural outreach 

At the end of 2025, a one-day county tour for foreign visitors was organised during a new wooden toy launch event in Yunhe. Belgian blogger Lucas Deckers livestreamed his experience, noting that Yunhe had completely reshaped his perception of wooden toys. From the natural beauty of Xiangong Lake to the historical richness of the Wooden Toy Museum, and from China-chic designs in cultural and creative spaces to global sales via livestreaming hubs, Yunhe offered the world an immersive glimpse into its complete industrial ecosystem and cultural landscape. 

Yunhe employs a multipronged strategy to promote Chinese culture worldwide through its wooden toys. Each exported toy is more than just a product - it serves as an ambassador of Chinese craftsmanship and heritage. Leveraging social media and self-media platforms, companies share the stories behind their creations, allowing global consumers not only to acquire high-quality items but also to engage with the cultural meaning embedded in each piece. 

As the “wooden toys plus” model expands to include education, health care and elderly care, and cultural tourism, Yunhe continues to explore new avenues for industrial integration. Initiatives such as wooden toy theme parks, immersive intangible cultural heritage workshops, and study-tour bases for primary and secondary students are gradually transforming the county into a hub of wooden toy culture. Yunhe’s experience demonstrates that China’s county-level economies can secure a distinctive place in the global value chain by developing specialised industries, moving from simply connecting with the world to actively engaging in a cultural dialogue with it. 

Elderly residents play with wooden toys at a senior care centre in Yunhe County, Zhejiang Province, on 10 November 2023 (XINHUA) 

Bright prospects 

Yunhe’s approach provides a valuable reference for the transformation and upgrading of China’s county-level economies. A development model anchored in distinctive industries can create direct connections between small counties and global consumers. As wooden toys evolve from children’s playthings into emotional carriers for all ages, as traditional craftsmanship merges seamlessly with intelligent technology, and as product trade becomes a tool for cultural outreach, the story of this fairy-tale town is increasingly resonating on a global stage. 

Using wooden toys as a medium, Yunhe is showing the world another possibility for China’s industrial transformation. Through small pieces of wood, the world sees not only the upgrading of Chinese manufacturing but also its cultural values that emphasise connection, care, and sustainability. 

It is not about cold machines replacing people, but about the warm coexistence of technology and humanity. It is not about a single-minded pursuit of economic gain, but about the coordinated evolution of industry and culture. It is not passive integration into globalisation, but an active dialogue with the world. Here, every piece of wood carries a fairy tale on its journey to the world. 

Looking ahead, as the “wooden toys plus” ecosystem continues to expand, Yunhe will further explore the deep integration of industry, culture, and tourism.