Chinese authorities knew about safety problems with magnets on toys months before Mattel Inc. issued a massive recall, an industry official told Reuters Wednesday.

On Tuesday, the California-based toymaker recalled nearly 18.7 million toys worldwide because of magnets that could be swallowed, risking potentially fatal intestinal perforations, infections or blockage in children that swallow more than one, and excessive amounts of lead in the paint. About 10 million toys were recalled in Canada and the United States.

Polly Pocket toys are shown in the office of Talbots Toyland in San Mateo, Calif., Tuesday, after the store pulled items from shelves that were on the toy recall list.
(Paul Sakuma/Associated Press)

The Chinese official, who asked not to be identified, said the issue with the magnetic toys was known back in March, but neither the U.S. company nor the manufacturers were notified.   

"We knew about the situation, because since March some toys had been recalled due to magnetic parts problems," said an official with the China Toy Association.

The China Toy Association plans to meet with the Commerce Ministry and a quality watchdog Wednesday to discuss solutions to the problem.

China has been struggling to regain the trust of consumers worldwide after a string of recalls involving a number of products, including defective tires and tainted toothpaste.

Two weeks ago, Mattel's Fisher-Price division recalled about one million toys sold in the U.S. that could contain lead paint. The toys were painted by a Chinese subcontractor.

Chinese authorities have admitted that it will take years to set up a proper inspection system to ensure products are safe.

Already, officials are looking at solutions such as having North American companies send their own inspectors to Chinese factories to ensure their standards are met. As well, some companies have begun training Chinese inspectors.

Tuesday's recall by Mattel involves toys such as Polly Pocket dolls and Batman action figures, about 890,000 of which were sold in Canada. About 32,800 Sarge die-cast cars sold in Canada were also recalled because they contained lead paint.

The recall expanded on a similar recall in November 2006.