MATTEL’S STRATEGY AFTER ITS RECALL OF PRODUCTS MADE IN CHINA In the summer of 2001, Mattel, the largest toymaker in the US, saw its sales dip sharply when it recalled its Chinese-made toys several times. The recalls also led to public hearings in the US Congress. which significantly affected its reputation. I-ike other toymakers, Mattel had been relocating its production abroad and outsourcing the manufacture of parts and components. Ln2007, Mattel produced 65ohof its toys in China.r In contrast to its competitors, however, Mattel understood the importance of quality control in the process of relocation and outsourcing. In the 1980s, it reversed its earlier strategy of outsourcing to factories in Asia by owning and operating some plants in Asia for the production of its most popular products.