Cheung Shu-hung, who co-owned Lee Der Industrial Co., committed suicide at a warehouse over the weekend, apparently by hanging himself, the Southern Metropolis Daily reported.

"When I rushed there around 5 p.m., police had already sealed off the area," the newspaper quoted a manager surnamed Liu as saying. "I saw that our boss had two deep marks in his neck."

Though the report did not give a reason for Cheung's apparent suicide _ and the company declined to discuss the matter _ Lee Der was under pressure in a global controversy over the safety of Chinese made products.

This month, Mattel Inc., one of the largest U.S. toy companies, was forced to recall 967,000 plastic preschool toys made by Lee Der because they were decorated with paint found to have excessive amounts of lead. The toys, sold in the U.S. under the Fisher-Price brand, included likenesses of Big Bird and Elmo, as well as the Dora and Diego characters.

Days later, Chinese officials temporarily banned Lee Der from exporting products. The Southern Metropolis Daily, citing unidentified Lee Der workers, said the recall cost the company US$30 million (euro22 million).

The recall was among the largest in recent months involving Chinese products, which have come under scrutiny worldwide for containing potentially dangerous high levels of chemicals and toxins.

Chinese officials, anxious to protect an export industry crucial to China's booming economy, have aggressively tried to shore up international consumer confidence by cracking down on makers of shoddy goods, crafting new regulations and stepping up inspections.