Ye Chen, a 37-year-old Yunhe native, exemplifies this transformation. Growing up surrounded by relatives who ran wooden toy factories, Ye initially viewed the industry as low-end manufacturing.

Wooden toys, which include blocks, puzzles, trains and educational tools, only account for 5.6 percent of China's toy market in 2023, according to Zhiyan Consulting, a Chinese market research company.

Watch the meticulous process of sawing teak wood into perfectly measured blocks. Skilled craftsmen use precision tools to slice the dense wood into 20x20 blocks, showcasing the expertise and ...