Last week, hundreds of unemployed workers took to the streets demanding a toy factory of the unpaid salary. The plant’s closure is attributed to a decline in demand from the United States.

Guangdong Provincial Labor and Social Security and Provincial Development and Reform Commission are to establish a benefit fund to help non-payment of wages for workers in financial difficulties.

Youjun Liu, the head of the Guangdong Provincial Labor and Social Security said they will help unemployed workers find new jobs, may also use legal means to protect their legitimate rights and interests.

As the rising costs of labor force and the imports, the appreciation of the Renminbi, more stringent inspection standards and other factors, the prosperity of Guangdong exporters suffered a blow in recent years.

Today, the U.S. credit crunch led to the spread of the crisis. China South factories can only rely on the instability of the loan to survive, and had to lower profits for foreign orders.