Mattel delivered a humiliating public apology to "the Chinese people" yesterday over recalls of toys made in China.
In a carefully stage-managed meeting in Beijing with a senior Chinese official which, unusually, was open to the media, Thomas Debrowski, Mattel's executive vice-president for worldwide operations, read out a prepared text that downplayed the role of Chinese factories in the recalls.
He said: "Mattel takes full responsibility for these recalls and apologises personally to you, the Chinese people, and all of our customers who received the toys."
The apology was in stark contrast to comments by Robert Eckert, Mattel's chief executive. Mr Eckert suggested, in testimony to the US Senate last week, that outside contractors were to blame for the product recalls.
"We were let down, and so we let you down," he said at the time.
Mattel's apology came even as China faced more embarrassment when Simplicity, a Wal-Mart suppler, announced that it was recalling about a million Chinese-made cots that have been linked to at least two infant deaths.
California-based Mattel has announced three separate recalls of 21 million toys made in China, where the company conducts two-thirds of its manufacturing. But while some of the products were recalled because they used excessive amounts of lead paint, the vast majority, about 18 million, were deemed unsafe because of Mattel design flaws, rather than shoddy manufacturing in China. Doggie Day Care, Batman and Polly Pocket toys were recalled because they contained small magnets that could be dangerous if swallowed by children.
Mr Debrowski said Mattel understood and appreciated "the issues that this has caused for the reputation of Chinese manufacturers".
Prof Joel Lampel, a professor of strategy with the Cass Business School in London, said Mattel's U-turn had been driven by a need to build bridges with Beijing.
"From a sales point of view, the damage has already been done. They have to salvage some of their business relationship with China. They need the goodwill of the government," Prof Lampel said.
Beijing has argued that the toy recalls unfairly damaged the credibility of its manufacturers, at a time when questions have been raised about the quality of Chinese-made goods.