Certainly a problem and China might be at the high end; however, problems with academic publishing is global not one country. For those interested, http://retractionwatch.com/    

A few of the recent reports

http://retractionwatch.com/2017/08/10/paid-publish-not-just-china/
http://retractionwatch.com/2017/08/10/unearthed-docs-monsanto-connected-campaign-retract-gmo-paper/

As for anti-freeze in toothpaste anecdote, it reminds me of the time Austrian wineries laced their wines with the toxic substance diethylene glycol (used in anti-freeze).

Seems the problem might be more a poor regulated market system that provides financial incentives such that individuals and companies game the system and conspire to increase profits. And now that academia is increasingly run like a business, should we be surprised by stories like these? Isn't that how it is supposed to work?  ;-)