They may have it, but it does not extend all the way into China every time.
One has to understand the manufacturing setup in China to see how different it is to other places. Their manufacturing is still based upon old Soviet communist style ideals of having multiple factories that make designs which are done elsewhere. This means is that once a design is approved, factories gear their manufacturing processes to meet that demand and churn out items. The result of the capitalist ideals adopted by China in the 90's led to a lot of these factories struggling to maintain product lines and quality at the same time. This is due to the fact that they never had QA integrated into their processes and that their R&D is not integrated into the loop.
Which means that more than one factory will be making the same pink bunny, but all of them could be very different. One factory that does have strict materials and flow control would make perfect bunnies but also be expensive; others that do not use good quality materials or skilled workforce will have cheaper prices for those bunnies but then the quality will show.
So essentially it matter to ensure that everything that you put into a product in China has to be checked out throughout the manufacturing pipeline to ensure quality.
The bad rep that China has for quality is actually undeserved as it ignores the communist mindset that was imported from the USSR and the need to employ a lot of people into the system. Automation came very late into the game because quite simply, machines are likely to make less errors doing the same task as people are.
