The amount of tainted goods coming out of China is mind boggling. A Google News search for China and Tainted brings back over 5,000 articles on the subject. It all started with the cat food and grew from there. Now it's everything from toothpaste to tires, toys to clothes, and god only knows what else. Mattel has been top notch on this, recalling millions of toys that were made in China due to excessive amounts of lead in the paint. There's also word that some children’s clothes made in China have 900 times the acceptable amount of formaldehyde. 
The issue of quality is just one of the many problems with China. There's also a big issue with counterfeiters and I'm not talking about those cheap fake watches either. It seems that China has focused in on Canada's top notch ice wines and started pumping out fakes for a fraction of the price. Causing sales of the real product to drop madly.
I don't know if China can change their ways. I know that I can't trust China-made products right now. I have even started going through the kids toys and tossing anything with a "Made In China" label into the trash. When China was awarded the 2008 Olympics, a friend of mine was so pissed off that he started to boycott China. We all laughed at him. Sure, we were all upset that China got it over Canada, but was it really necessary to boycott? Now it looks like he was on to something back then.
Heck, I haven't even mentioned anything on Censorship in China yet. China has a long way to go before I will trust anything coming out of that country. No more "Made in China" for me.