Sept. 21 (Bloomberg) -- The maker of Graco and Simplicity cribs recalled 1 million Chinese-made cribs with design flaws after three children died, while Mattel Inc., the world's largest toymaker, apologized to China and took the blame for design problems in its toys.

Mattel said today the recall of 18 million toys with potentially dangerous magnets was the result of ``issues'' with its designs, not the Chinese origin. The toymaker, which makes about 65 percent of its toys in China, sent an executive to a meeting today with the country's product-safety chief and apologize in front of reporters and television cameras.

``They don't want to savage a key manufacturing relationship, but obviously they want to convey a commitment to safety to the American people.'' said Bob Goldsborough, who helps manage $14.6 billion, including Mattel shares, at Ariel Capital Management LLC in Chicago. ``They're treading a middle road.''

Two infants died after consumers installed the ``drop- side'' of an older-style crib made by Simplicity for Children Inc. upside down, in part because of poor design, the U.S. Consumer Product Safety Commission said today in a statement. A third death was linked to a newer crib that wasn't recalled.

The Simplicity crib defects, which cause the drop-side to come loose, create a gap that can trap infants and small children if the part is installed upside down, the CPSC said. The problem results from ``both the hardware and crib design'' and may lead to suffocation, the agency said.

The CPSC said it was aware of seven cases where infants were trapped as part of 55 incidents reported.

Chinese Exports

China, the world's biggest exporter of consumer products, has faced pressure from global regulators to strengthen safety checks after products from contaminated toothpaste to tainted pet food and 18 million Mattel toys with small magnets were recalled.

Retail products are fueling China's expansion, with the fastest-growing major economy exporting $344 billion of consumer goods last year.

China last month announced a four-month campaign to weed out defective products and repair damage to the nation's brands. The government agreed to increase inspections at factories, and the U.S. said it would address Chinese concerns that problems with imported toys often come from faulty designs by U.S. toymakers.

Recalled Cribs

Some of the recalled cribs carried Newell Rubbermaid Inc.'s Graco logo, and were made under a licensing agreement that ended in 2005, said David Doolittle, a spokesman for Atlanta-based Newell. He didn't immediately know how many of the recalled cribs were Graco-branded. Newell engineers didn't design the cribs.

The recall also included some cribs made with the Winnie the Pooh character, which is owned by Walt Disney Co. Disney spokesman Gary Foster didn't return a message seeking comment.

Mattel rose 38 cents, or 1.6 percent, to $23.94 at 4:06 p.m. in New York Stock Exchange composite trading. Newell rose 13 cents to $28.83.

The recalled cribs were sold in department and children's stores and mass retailers between January 1998 and May 2007, and cost $100 to $300. The crib models also include Aspen 3-in- 1, Aspen 4-in-1, Nursery-in-a-Box, the safety commission said.

None of the cribs sold in stores right now are involved in the recall, Simplicity said. Customers who have questions about the installation of the drop-side rail should contact them.

`Up or Down'

``It was one of the design flaws that it could go either way, up or down, or backwards or forwards,'' Simplicity President Ken Waldman said today in a telephone interview. ``As soon as we figured out what the problem was, we acted as quick as we possibly could.''

About 104,000 Simplicity cribs, sold under the Aspen 3-in- 1 Graco brand, were recalled in December 2005 because screws on the wooden mattress support could come loose, allowing the mattress to fall and possibly suffocate children. Those cribs were also made in China.

Since August, Mattel has recalled 21 million Chinese-made toys for excessive lead paint or loose magnets.

Earlier today, Thomas A. Debrowski, Mattel's executive vice president for worldwide operations, apologized in a meeting with Chinese product-safety chief Li Changjiang.

Debrowski said a majority of the toys recalled were because of flaws in Mattel's design. About 80 percent of U.S. toys are made in China.

``The magnet-related recalls were due to emerging issues concerning design, and this has nothing to do with whether the toys were manufactured in China,'' Mattel said in a statement.

A study of 550 U.S. toy recalls since 1988 found that 76 percent stemmed from design flaws such as using small parts. About 10 percent were caused by manufacturing defects such as lead paint or poor craftsmanship, two Canada-based researchers reported earlier this month.

(Consumers with questions about their Simplicity crib, or who want to receive a retrofit package can contact the company toll-free at (888) 593-9274 or go to its Web site at http://www.simplicityforchildren.com.)

To contact the reporter on this story: Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net; Heather Burke in New York at hburke2@bloomberg.net.

Last Updated: September 21, 2007 19:02 EDT