So your factory has just spent a year producing 18 million toys and shipped them and now here they are all back at your shipping dock. That’s 18 million toys piled up in the front yard and no customers. The profit margin has to suck right then.
Expect power struggle to heat up at many board rooms and Chinese Politburo. After all, somebody should take the blame.
Dollars to donuts (forgive the oldhickism, I'm a neo-hick, and feeing it in my used-up bones this fine morning), the profit margin won't suffer that much, for two reasons.
First, the cost of production is likely absurdly cheap, due to the wonders of slave labor.
Second, I doubt those things will spend that much time on the loading dock. I will NOT be surprised if they end up being relabeled, re-certified as "lead-free", and resold, to some two-bit (possibly Chinese-owned) importer, who will sell them to a bunch of small "mom and pop" stores (rather than national chains with a high profile).
Look at the obstacles encountered in trying to backtrace the origin of the poisons in the pet and human food they sold us. China is expert at burying that kind of evidence via shuttling product from pillar to post before zinging it across the seas.
They may even decide to play it safe, and sell it to third world markets, where such things as chemical composition and physical risk are quite possibly going to take a back seat to things like appearance and price.
Bottom line, I'll be really surprised of those things end up in a landfill.