There is reason to be concerned about toys made in China, which is most of the toys in the world market. According to news reports in India (US news agencies have failed to pick up on the story), 20% of toys made in China are unfit for children. Quality tests revealed industrial waste and gauze discarded by hospitals in toys made in China! This is an improvement from 25% of toys made in China that were found unfit last year.
Many of my friends boycott products made in China due to human rights violations in Tibet. I am not sure that buying products made in the US gives the consumer a clear conscious. There is no guarantee that just because a product was made in the US that the workers were paid living wages and received health care benefits. In addition, the US's record on human rights violations is not clean. Watch the Ghosts of Abu Ghraib for a deplorable example of US torture and violations of the Geneva Convention. Buying from green companies, no matter their location, usually guarantees that ethical considerations are part of the manufacturing process.
For more information on unfit Chinese toys, click the links below: