In 2007, a series of product recalls and import bans were imposed by the product safety institutions of the United States, Canada, Western Europe, Australia, and New Zealand against products manufactured in and exported from the mainland of the People's Republic of China (PRC) because of numerous alleged consumer safety issues. The many product recalls within the year led Consumer Reports and other observers to dub 2007 "The Year of the Recall.”

Events in the confidence crisis included recalls on consumer goods such as pet food, toys, toothpaste and lipstick, and a ban on certain types of seafood. Also included were reports on the poor crash safety of Chinese automobiles, which were slated to enter the American and European markets in 2008. This created adverse consequences for the confidence in the safety and quality of mainland Chinese manufactured goods in the global economy.

On March 15, 2007, a Canadian pet food manufacturer notified the US Food and Drug Administration that animals had died after eating its products. The next day, popular brands of pet food were withdrawn across the US while the FDA began its search for the cause. The prime suspect was contamination indicated by the presence of melamine, an industrial chemical found in plastics and resins. The FDA examined 210 samples of pet food and ingredients in six field laboratories. Of those, 130 tested positive for melamine either in the food itself or in wheat gluten used to thicken the gravy accompanying it. Researchers at Cornell University found crystals of melamine and cyanuric acid in urine and kidney tissue taken from dead cats, New Scientist reported. 'How melamine might have got into the pet food remains controversial,' the journal added. 'The FDA says it originated in wheat gluten and rice protein concentrate imported from mainland China that was added to the pet food by US manufacturers. American journalists have since reported that factory owners in China have admitted to routinely adding melamine to such products to boost their nitrogen content, and so make it appear that they contain more protein than they actually do. China explicitly banned this practice on April 26, 2007, though officials dispute any suggestion that melamine from their country could have been responsible for harming American pets.

In April 2007, animal feed provider Wilbur-Ellis Company issued a recall of rice protein it supplies to pet food companies because it may contain melamine. The rice protein was imported from Binzhou Futian Biology Technology Co. Ltd. in China, a company spokesman said.

In June 2007, toy firm RC2 Corp recalled several of its Thomas & Friends Wooden Railway wooden train sets because of the level of lead in the paint its Chinese contractor had used.

In December 2007, the company recalled all of its The First Years 3-in-1 Flush and Sounds Potty Seats because a Chinese contractor had used orange paint that contained excessive levels of lead on the decorative plaques inserted into the back of the potty seat.

In August 2007, millions of Chinese exported toys made by Mattel were recalled due to overdoses of lead paint. Such products include dolls, action figures, diecast cars, and Fisher Price products.

In November 2007, the Australian-distributed toy known there as Bindeez was voluntarily recalled. This was due to shipped toys which contained the toxic chemical 1,4-butanediol that sickened children when it metabolized into the anaesthetic GHB.