It's a washcloth with folded/sewn corners that she can rub under her fingers over or rub on her face.
I understand that the cribs at the orphanage were simple boards lined with a towel and many of the kids could soothe themselves by playing with the towel.
Some of the other Shenzhen parents have reported that their baby is expecially attached to a washcloth or handtowel and some of them say their child only likes China towels!
Fortunately, Gwen loves any towel/washcloth that has a firmly sewn corner.
When she's stressed, she'll grab her 'lovey' and search out the corner and play with it. I really wish the orphanage would have sent a washcloth/towel with her on Gotcha day. It sure would have been easier for her to get through that traumatic day if she had a lovey! It was three days before she started being herself enough to show us that she liked towels. Since then, she's never been without her cherished lovey! It's made her life easier and ours too!
Isn't she cute doing that? :)