After Mattel (NYSE: MAT) announced its first huge lead-based paint recall spanning dozens of my children's favorite toys, from Diego to Elmo (how could you?), my initial response was something along the lines of: no more Chinese toys, ever! After the second recall, largely focused on Polly Pocket dolls (I have boys but still, Polly Pocket is hard to resist) and choking hazards, I went even further and darkly considered removing the plastics from my family's consumption altogether -- more than one friend made that decision, too, putting plastic toys and Tupperware in garbage bags and divesting entirely.

Late last night, Mattel announced yet another recall, this one not quite so big as the others and focused largely on small parts of Barbie accessories -- the dog from the Barbie Dream Puppy House; the cat from the Barbie Dream Kitty Condo; the dog and dinner plates from the table and chairs kitchen playset -- as well as a few toddler toys, two GeoTrax trains and the lid from a bongo drum in a Big, Big World playset. And I? Had almost no reaction. I didn't frantically root through my children's toy boxes, searching for toxic toys. I didn't email all my friends, using a subject line with several exclamation points. I didn't call my pediatrician's office to schedule a blood lead test (ok, so I've already done that). Mattel, I've decided, isn't the bad guy here; nor am I quite as angry at China (even though I'll admit to a greatly heightened blood pressure when I heard that a Chinese government official objected to lead limits in children's jewelry).

The thing is, while I've decided to severely limit my consumption of plastic children's toys, this isn't about them anymore.

Earlier this month, Mattel Inc. (NYSE: MAT) was forced to recall 967,000 toys produced in China due to high levels of lead in the paint used on the toys. This was just another in a string of recent product recalls involving Chinese products, but the end result is a sad story, as Zhang Shuhong, who co-owned Lee Der Industrial Co. Ltd., which manufactured the recalled toys, took his own life at the company's warehouse over the weekend.

According to reports, Shuhong hung himself this past Saturday. Earlier in the day he had greeted workers and briefly talked with some of them before taking his own life later in the day.

One of the company's managers, Liu, said that Zhang Shuhong was fooled into using the harmful paint and had bought the bad paint from one of his best friends. While all reports that I have seen have all stated that Mr. Shuhong did not willingly use harmful products in the company's toys, the damage was done, and the company has been placed under a temporary export ban of its goods.

Main market news here: Before the bell: Cisco (CSCO) earnings boost futures.

The Blackstone Group (NYSE: BX) announced Wednesday morning that it has closed its latest fund, Blackstone Capital Partners V. The $21.7 billion fund is the largest buyout fund ever.

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Apple (NASDAQ: AAPL) unveiled its new iMac on Tuesday, which features a slimmer, aluminum casing and a suite of software targeted at winning over users of Microsoft (NASDAQ: MSFT)'s Windows.

Mattel Inc. (NYSE: MAT) has named the Chinese manufacturer of almost 1 million Fisher-Price toys that it had to recall last week for possible lead paint.

Maybe it's time to look under your kids' beds.

Fisher-Price, a division of toy-maker Mattel, Inc. (NYSE: MAT), is recalling nearly one million plastic pre-school toys because of unsafe levels of lead paint. The toys were painted by a Chinese vendor with whom the company has a long association.

The recall, the second-largest this year involving toys, involves 83 different products made from April 19 through July 6. Toy characters parents (and their pre-school children) will certainly recognize include Elmo, Dora the Explorer, and her pal Diego.

The U.S. Consumer Product Safety Commission has a full list of the recalled toys here.

Mattel's (NYSE: MAT) Fisher division is recalling about a million toys. The products contain (subscription required) high levels of lead.

Oh, and the products were made in China. Mattel says it did not catch the problem earlier because they were made by a "trusted" manufacturer.

Most of the toys have not been shipped from warehouses.

Mattel's problems raise the issue of whether US companies are going to have to spend increasing sums of money to audit Chinese manufacturing processes and inspect products from that country as they come to the US market. The current recall is part of an emerging epidemic of serious concerns about items manufactured in the world's most populated country.

That brings up the P&L question of whether out-sourcing manufacturing to Chinese companies is really less expensive over time. If Chinese work quality is too low for most US companies. the cost of monitoring and inspecting these products could sky-rocket. And, this could off-set the advantage of China's cheap labor force.

Made in China may come to mean too much cost and too much risk for many US firms.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Click here for Mattel toy recall coverage

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