Mattel is recalling 1.5 million toys worldwide manufactured in China over lead-heavy paint used in products made by its subsidiary Fisher-Price, the Financial Times reported. The company retrieved two-thirds of the toys before they reached stores. The recall surprised many, as Mattel owns many of the factories it uses in China and has high monitoring standards. The company said a long-time supplier was the culprit, though it did not disclose a name. "Lots of producers in China will subcontract parts of the process, so you have to audit several layers down to get to the original source," said Dane Chamorro of consultancy Control Risks. Minister of Commerce Bo Xilai strongly defended the quality of China's exports yesterday that "over 99%" of China's exports are safe. The recall will reduce the operating income of Mattel by 50%, or US$30 million.