Lawguy checking in....
I'm not a fan of sub-par goods whether they come from Beijing or Akron. Granted, the problems with Chinese goods have been in the news lately, rightfully so.
This is an example where lawsuits can be of use. I cannot speak for every state, but where I practice, a product liability suit must be brought against the manufacturer if possible. If jurisdiction cannot be obtained over the manufacturer (which would be a problem with Chinese companies), then the suit is brought against whoever in the chain of distribution jurisdiction can attach to. This forces, in theory, if not practice, all members in the retail chain to ensure the quality of their goods. The "don't blame it on us, blame the Chinese manufacturer" defense will not work unless a suit can actually be brought against the manufacturer.
As for government regulation, there is plenty of regulation already. The question is one of enforcement.
- the Dept. of Agriculture has regulations against adulterated pet food.
- the CPSC and EPA have regulations against lead paint
- the U.S. Dept. of Transportation regulated tires for highway use.
Now- the inspection and enforcement may need work, but the regulation is there.