For you, teddy, the globalisation is over. Steiff’s decision to repatriate the manufacture of its teddy bears from China back to Germany is a small but striking reversal of the globalisation process.

In the space of a few years, China has achieved near world-domination in toy manufacturing. There are signs, however, that escalating wage costs and shipping rates are eroding the competitive advantage of its factories.

Some Western companies also complain that their Chinese suppliers cannot respond quickly enough to changing fashions. Others have been disappointed by the quality, though it is surprising that in a country trying to build a world-class aerospace industry Steiff couldn’t find a supplier to put its teddies’ eyes on straight.

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