There's an upscale shopping mall in Ningbo that actually has a Toys 'R Us store.  It's not quite the behemoth of a store I'm used to seeing in the US....but there's still a few things to choose from.

And Chinese kids love toys, especially if they can afford the good stuff.  The boss's young son runs around the office during school holidays and on Saturdays.  He's got a big box full of toys: guns, action figures, airplanes, swords, etc etc.

I've seen a few Toys R Us stores in Shanghai but again they're pretty small.  In the shopping malls here there are quite a few toy stores. 

The Chinese government ordered the closure of all toy stores because too much working time was being used up by officials going there to play.

They have a toys r us store and a lego store at the shopping mall that's close to my house. 

There is another toy store at the mall down the street called Uptown mall on the second floor nothing but toys..

It'd be better to know what part of China you're living in.  I can only speak about Beijing, but in Beijing there's plenty of toy stores although I do think kids in America have it a lot better when it comes to toys.