To help suppliers in China's toy hub reach more customers in the Middle East, the Chenghai government launched China's Chenghai Toys Exhibition Center in Dubai in late November.

Manufacturers in labor-intensive industries are turning to Asia, Mexico, Brazil, Russia and the Middle East to shore up their profit margins. While not without challenges, the endeavor has yielded double-digit growth for many product lines.

Increasing trade protectionist measures, the yuan's appreciation and the still uncertain financial situation in the EU and the US have led many China companies to cultivate sales in new markets.

The EU has been imposing anti-dumping duties on China-made shoes since 2006. Other labor-intensive industries such as toys face similar duties from the EU and the US as well. While this was sufficient reason for a few suppliers to start exploring alternative destinations, the yuan's appreciation pushed more businesses to consider this step. Shoemakers, on average, run on 3 percent margins. The currency, meanwhile, has strengthened more than 2 percent since it was depegged from the dollar.

But exporting to new markets comes with its own problems. For one, suppliers are less familiar with the trade policies than they are with the EU and the US. Buyers from such countries also tend to place orders for basic or entry-level goods, which yield low profits. Moreover, growing exports to emerging destinations have resulted in several anti-dumping investigations against China-made products.

Even so, most businesses that increased their focus on new markets, regardless of product line, have seen positive results.

China customs statistics show Q1 to Q3 2010 exports to ASEAN-member countries, India, Russia and Brazil increased by an average 45 percent to nearly $100 billion, $30 billion, $21 billion and $18 billion, respectively. In the same period, shipments of footwear and parts to India, Indonesia and Thailand more than doubled. Sales of toys, games and sports equipment to Israel, Mexico, Thailand, Russia and the Philippines grew between 70 and 177 percent. Similarly, exports of screws, bolts and nuts to Brazil, Malaysia, Russia and India rose between 97 and 258 percent.