OUTSOURCING THE RECESSION. The toys that are no longer made in the United States are temporarily not being made in China.

The financial meltdown that has thrown so many American families into crisis might be even worse on this side of the world. The precipitous drop in consumer demand has translated into a wave of factory closings that have spit millions of Chinese workers out into the ranks of the unemployed.

Until recently, Dongguan had 3,800 toy factories, producing a staggering 30 percent of the world's toys. A trade group here estimates that 1,800 of them have closed or will close soon.

The 37-year-old [toy factory worker Yanjun] Yang lost her job making hairpieces for Barbie dolls in October, when Smart Union Toys abruptly closed down.

A China that is unable to run a current account surplus is unable to buy U.S. Treasuries. Discuss.