China Labor Watch (CLW), a US-based non-governmental organization, has reported alleged worker exploitation at Shunjia Toys Co Ltd, a manufacturing facility identified as a key supplier for Pop Mart's Labubu dolls. The allegations, based on an investigation including interviews with over 50 employees, detail concerns regarding excessive overtime, contract irregularities, and working conditions for underage employees. Pop Mart has stated it is investigating the claims and affirmed its commitment to worker welfare and compliance within its supply chain.
Investigation Findings and Allegations
CLW conducted an investigation that included interviews with over 50 employees, including individuals under 18 years old, at Shunjia Toys. The organization's report details several alleged labor violations:
- Excessive Overtime: Workers reportedly exceeded the legal limit of 36 hours of monthly overtime, with some individuals allegedly working over 100 additional hours per month.
- Contract Practices: Employees were reportedly instructed to sign labor contracts with blank sections for critical details such as contract term, job content, salary, and social insurance. Workers were given limited time to complete the signing process and were reportedly told not to read or fill in other sections. Some employees also lacked understanding of their signed contracts and legal status.
- Underage Workers: Workers aged 16 and 17 were allegedly employed in standard assembly line positions, performing tasks and facing production targets identical to adult workers, without the specific protections mandated by Chinese law for young employees.
- Safety and Paid Leave: The report also cited a reported lack of safety training and protections for employees, as well as an alleged absence of paid leave provisions.
- Production Targets: Teams comprising 25-30 workers were reportedly required to assemble a minimum of 4,000 Labubu toys daily.
Shunjia Toys Co Ltd employs over 4,500 workers. While one source identified the factory's location as Guangdong province, another indicated Jiangxi province. The investigation spanned three months in 2025.
Production Context
Shunjia Toys has an official annual production capacity of 12 million units, with plans announced in late 2025 to expand to 33 million units. However, CLW's interviews indicated that the factory's actual output already surpassed 12 million units, with some estimates suggesting two teams alone could produce over 24 million units per year. Li Qiang, CLW's executive director, commented that this discrepancy between planned capacity and actual output can occur in the manufacturing sector during periods of rapid market demand, potentially leading to increased pressure on workers.
Pop Mart's "Monsters" toy line, which includes Labubu, generated 4.8 billion yuan (£511m) in sales during the first half of 2025. Pop Mart's CEO, Wang Ning, projected the company would achieve 20 billion yuan in revenues for 2025. Globally, Pop Mart reports producing approximately 30 million Labubu units per month, utilizing various manufacturing partners.
Company Responses and Recommendations
Pop Mart, a Beijing-based toy retailer, stated it is investigating the claims and expressed appreciation for the detailed review provided by CLW. The company affirmed its commitment to worker welfare and safety at its original equipment manufacturer (OEM) factories, stating that it conducts regular, standardized audits, including annual independent third-party assessments. Pop Mart indicated that if the allegations are substantiated, it would require relevant partners to implement comprehensive corrective actions in accordance with local laws and regulations. Shunjia Toys was unavailable for comment.
CLW has urged Pop Mart to take immediate action to address the identified issues within its supply chain. The organization recommends compensating affected workers and ensuring that production lines comply with Chinese labor laws and international labor standards. Li Qiang, CLW Executive Director, also suggested that existing supply-chain oversight mechanisms appear insufficient and recommended that Pop Mart establish accessible grievance and communication mechanisms for workers, improve transparency regarding factory working conditions, and disclose its full supply chain structure to enable meaningful oversight.