Over 700 toy factories in south China's Guangdong province have lost their export licenses or had them suspended over product safety concerns, AFP reported, citing state media. Hundreds of other factories have been ordered to improve both their facilities and the quality of goods they produce. The move came after the authorities reportedly sent 200,000 officials on an inspection tour of the province, taking in production facilities for medicines, food and toys. Of the 1,726 toy factories inspected – comprising 85% of Guangdong's export license-holding toymakers – 1,454 were found to be at fault. However, Lai Tiansheng, director of the provincial quality supervision administration, pointed out that only 1% of all Guangdong's exports failed to meet safety standards. Meanwhile, Japanese toymaker Tomy announced it would cut production in China by one third, although it said this was due to rising labor costs rather than the spate of product recalls in recent months.