Mark,
This is absolute baloney.
Who's responsible here? It's the firm that placed the order with China, for failing to hold its Chinese supplier(s) to high standards, and then accepting the result.
In this case Menards. In other cases Lionel, MTH, Atlas, <fill-in-the-blank>, etc.
Along with receiving the cost benefits of moving production to a lower cost country comes the responsibility for ensuring that the same, or better, quality comes back in return.
If you have to fly there twice a month and chew them out to get it, But you do it. And here's the irony of the situation -- it may cost you an arm and a leg to do so, but you just do it.
Because it's the right thing to do.
Mike