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A toy which was made in China that I bought for one of the children was recalled by the Consumer Products Safety Commission due to unsafe levels of lead. Who, if anyone, is liable for the lead poisoning that one of the small children sustained?

As a general rule, everyone that is in the defective and dangerous product's chain of distribution, from the manufacturer to the distributors to the retail store where you bought the product is potentially liable for the child's personal injuries. I emphasize the word "potentially," because there are other factors that could exempt some of these target defendants from liability in the New York courts, such as where they are beyond the court's jurisdictional reach. One example of this would be where the defective product's manufacturer is in a foreign country and does not have any meaningful contact with New York.
Jonathan Cooper
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Non-Compete, Trade Secret and School Negligence Lawyer