There was an article in one of last week's Wall Street Journal issues that mentioned this. I got the idea from the article it was fabricated to "get back at" the US (and other supportive countries) for "telling them what to do" concerning monetary policy.
China warns of safety hazards in imported designer clothes
(AFP) Mar 15, 2010
BEIJING China has impounded shipments of imported designer clothing from famous labels such as Hermes and Versace after finding they contained potentially hazardous chemicals, authorities said Monday.
Among 85 batches of imported clothes tested, 48 batches containing items from 30 international brands from 11 countries were found to be sub-standard, the industry and commerce department in eastern Zhejiang province said.
The hazards included excess levels of chemicals such as formaldehyde, which the agency said could cause respiratory and skin problems and in some cases lead to cancer.
Authorities have impounded the goods and started an investigation into Chinese merchants selling the "sub-standard" products, the department said in a statement on its website.
The brands affected also included Hugo Boss, Dolce & Gabbana, Tommy Hilfiger and Zara.