This thesis primarily concentrates on studying the development of China¡¦s toy manufacturing industry. This study tries to figure out how does the China¡¦s toy manufacturing industry evolve from the lower to the higher position in the supply chain of the toy industry. The term ¡§Made in China¡¨ is a problematic concept here. In this thesis, the ¡§China¡¦s toy¡¨ which designed by foreign corporation and made in China calls ¡§authorized toy¡¨; the China¡¦s toy which designed by China and made in China calls ¡§Chinese toy.¡¨ Considering the differences (the style of design, the level of technology, and the object market, etc.) between the ¡§authorized toy¡¨ and the ¡§Chinese toy,¡¨ the Chinese toy just satisfies China¡¦s market. So the facts of the term ¡§Made in China¡¨ just means that China has a big toy manufacturing industry now, but it not a great toy country yet. This finding might help the readers to understand the main problems in China¡¦s toy manufacturing industry and China¡¦s status in the world toy industry.