It has notified 10 US companies that imported or distributed Chinese products with potentially hazardous lead levels that it will sue after 60 days, unless they report to the US Environmental Protection Agency.
Among the companies, which were notified in the past week, are retailers Target and Dollar General and RC2.
The Sierra Club, said in an earlier press release that it had put 10 companies "on notice" for failing to notify the EPA of health risks associated with their products, but that release did not mention a lawsuit.
"After discovering a problem with one or more of their products, the ten companies requested that the US Consumer Products Safety Commission issue a voluntary recall, however, the companies failed to also notify the U.S. Environmental Protection Agency as required by law," the release said.
China is facing a global crisis of confidence in its products. In the US, which is China's most important export customer, safety problems with US imports of Chinese seafood, toothpaste, pet food and livestock feed containing contaminated wheat gluten have sparked a backlash by consumers seeking stricter rules on food safety and labeling.