It could be a terrible, out of control case of sebhorreic dermatitis which is caused by hormone imbalances or certain organisms. she could try a salacylic based shampoo or a zinc shampoo (scalpicin or Selsun blue) and it sounds like she would need several applications over the course of a week to make a dent in this. I think the China shirt is coincidental - and the dermatitis can also occur on other skin areas of the body - not just the scalp.
Why not get seen by a dermatologist just to get a professional diagnosis??