According to the footnotes given in Cindy Mao and Ma Baolin's Sing Chinese, the song is famous both in Mainland China and Taiwan and has been made popular by Teresa Teng, a Taiwanese singer.
I love singing it myself, what with it being in Eb and the voice part ranging over one and a half octaves makes it very Chinese for my taste. The lyrics are simple and beautiful as befits a children's song. The singer vows to love a clay doll for ever, because it has no parents, and even if it cannot talk.

Verse 1.
Clay doll, clay doll,	ní wá wa, ní wá wa
It's a clay doll.	yí gè ní wá wa
She has eyebrows, she has eyes.	yě yǒu nà méi máo, yě yǒu nà yǎn jïng
But her eyes can't wink	jǎn jïng bú hùi zhǎ
Verse 2.
Clay doll, clay doll,	ní wá wa, ní wá wa
It's a clay doll.	yí gè ní wá wa
She has a nose, she has a mouth	yě yǒu nà bí zi, yě yǒu na zuǐ ba,
But her mouth can't talk	zuǐ ba bù shuō huà.
Verse 3.
She is a toy doll.	tā shì gè jiǎ wá wa
Not a real little girl	bú shì gè zhē wá wa
She has no loving mama	tā méi yǒu qīng ài de mā ma
Or a papa	yě méi yǒu bà ba.
Verse 4.
Clay doll, clay doll,	ní wá wa, ní wá wa
It's a clay doll.	yí gè ní wá wa
I'll be her mama, I'll be her papa.	wō zuò thtmalad mā ma wǒ zuò tā bà ba
Love her for ever	yǒng yuǎn ài zhe tā.