The spike was just for support. The 80s and before had less regulations and safety measures than we do now. Remember the little dots that made trinkets and 3d bobs? They were first made with GHB. They were recalled but are still sold now. The toy isnt sinister, just antiquated building materials and safety guidlines
It just looks to be a plastic tip of a garden stake, probably couldn’t stab someone if it tried. Maybe some sharp mold lines from the factory could cause a scratch, but nothing more
Well, brazilian here The name "fofão" its not translated to cute, Cute is actualy "fofo" but here in Brazil we have something called augmentative (aumentativo), wich is used when you are saying something big, or a lot of, so when something is a lot cute que call It by its aughmentative, (usualy we add the "ão" at the end)so "fofo" turns to"fofão"
The "spike" is designed to keep the doll's head upright,the body was obviously plush material, and in the case of plastic headed dolls like fofao here, the hard plastic or vinyl head tends to sort of "sag" forwards, at the neckline where it is attached to the fabric body, so by attaching the "spike" to the base of the head, the stuffing inside the plush body supports his head, its not a knife...and no it wasn't meant to cause harm...as mentioned before, most plastic headed dolls have something very similar to the one shown, and is more of a "support spine"
This is not a knife, it is actually a plastic rod that served as a support for the doll's head, as the body was made of plush filled with foam balls and the head was made of vinyl.