In its apology, Mattel said its own "design flaw" was responsible for the biggest recall by far, involving around 18 million playsets studded with potentially dangerous magnets.

While soothing China's pride, the apology could make Mattel a target in lawsuits.
"I can't think of any other instance where" a major toy company "has actually come out with such a public announcement of a defect," said Andrew Krulwich, a former general counsel for the U.S. Consumer Product Safety Commission who now practices at Wiley Rein LLP.

Coming from a company with a history of fighting liability accusations, the announcement also suggests the escalating diplomatic and public-relations pressure Mattel faces around the world.

Chinese officials recently have ratcheted up criticism of Mattel and U.S. regulators, arguing they are putting too much blame on China in the recent recalls of toys and other Chinese-made products. Mattel's apology is a reminder that U.S. companies dependent on business in China offend the government at their peril.

Mattel has recalled more than 21 million toys world-wide in recent weeks. Some of the recalls involved excessive lead paint in Chinese-made toys. Flaws in the manufacturing process at Chinese plants have been blamed, leading to a cavalcade of negative headlines in the U.S. That added to the concerns about tainted Chinese imports including pet food and toothpaste.

In another apparent attempt to soothe Chinese sentiment, Mattel also said that it recalled more toys than necessary over lead-related issues. It said subsequent testing showed some of the recalled toys
"may not have had lead in paint in excess of the U.S. standards."

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