I had a problem like this a few years ago (with a customer). The smell went away in a few weeks. To me, it smelled like the frame (engineered material) was out-gassing.

I understand the furniture company did not make the chair, BUT it has always been my experience that any reputable furniture store/company would stand by the products it sells and assist you in trying to find out what the smell/problem may be. They should have a number/email to contact the suppliers they do business with, after all, the store who sold you the chair should care about ITS' reputation and the products/customer service it is supporting by selling them in their store! Just my thoughts. I am a firm supporter of American made furniture, again ,just my thoughts...

The problem with Chinese made products is there is no quality control. When you buy a chair made in China, doesn't matter what company name is on it, only the makers in China know what is in that chair or how it is made. The furniture store should not sell a product that they obviously know is defective and is not backed by the company that made it.
Go after the seller. They knew there was a problem or they wouldn't have told you what they did. How did they know the maker would not back the product? Yet they sold it to you.

YES you should go after the reseller, its their responsibility. First, make sure others can smell the chair as much as you can, if so take it back to the store. I wouldnt wait to long and take a chance the smell will go away.

We have to research everything these days. I have been shopping for new leather couches and found this out today.

A judge is expected to order several retailers to pay millions of pounds to people who suffered burns and rashes from faulty leather sofas.

http://www.dvorak.org/blog/2009/05/20/toxic-leather-sofas-from-china/
After investigation, it was found that the couches were packed with sachets containing dimethly fumarate DMF, an antifungal agent intended to prevent the leather from getting moldy during storage and shipment from China. The chemical evaporates, penetrating the leather and can transfer to clothing and skin. Even small levels of exposure can cause serious skin sores, blisters, rashes and eye irritation. And some victims have reported that their problems have persisted long after the couch has been put on the curb.

http://blogs.consumerreports.org/safety/2009/05/toxic-sofas-couches-rashes-chemical-burns-britain.html

"Caveat emptor" (Let the buyer beware.)

Here is a link that might be useful: Toxic Leather from China

wow greenie44, how frightening. if consumers continue to buy cheap chinese items this may become a larger problem. also, it is putting american furniture makers right out of business, we will have no choice but to purchase chinese products if we don't support our american makers!!

I would like to thank all, especially greenie44, for posting the Consumer Information on Asian Furniture. It is a shame that Flexsteel wouldn't respond to my concerned but polite letters. I will do what I can now to contact as many as will listen about my experience. I think I am hurt that an American Company doesn't value my business enough to answer a letter from a customer. I saw where Dollar General had an almost identical recliner for $249. The smell probably isn't any worse and I could have saved a thousand dollars. And Dollar General is making a profit on a $249 chair. Go figure Goodbye Flexsteel