BRUSSELS, Nov 22 (Reuters) - China has made "considerable progress" in cracking down on the export of dangerous toys and other products after a string of major recalls, the European Union's consumer affairs chief said on Thursday.

Consumer Protection Commissioner Meglena Kuneva also proposed measures for EU business and governments to reduce the risk of dangerous goods entering the market.

"In this world you cannot give 100 percent guarantees. But you can make sure the system is fit for the purpose," she said.

China is due to introduce soon a new domestic alert system modelled on EU procedures and was already more active in investigating problems, the European Commission said in a statement.

Kuneva had previously raised the prospect of a ban on toy imports if China failed fully to address her concerns.

She launched a review of EU toy safety standards in September after the recall of millions of toys this year due to excessive levels of lead paint and other unsafe components.

Toy safety is due to be discussed at an EU-China summit on Nov. 28.

The world's biggest toymaker, Mattel Inc <MAT.N>, has recalled over 21 million Chinese-made products in the last four months.

A report published by Kuneva's officials on Thursday said the "first legal responsibility to put safe toys on the market lies with industry" and there were still problems with some companies in ensuring product safety.

Priority action should include a full audit of safety measures in the toy supply chain to be concluded in the first three months of 2008, the EU's executive Commission said.

The EU executive also said it would come up with "appropriate warnings" about the danger of magnets in toys while EU governments should enhance cooperation between customs and market watchdogs and improve traceability of consumer goods.

Furthermore, the 27-nation bloc and the United States, which have worked together in the wake of the recent recalls, would jointly study ways to improve product and import safety under their new Transatlantic Economic Council, which brings together top-level policymakers from Brussels and Washington. (Reporting by William Schomberg; editing by Dale Hudson)

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