Rugg and Ragg are not interchangeable. If you're talking about Rugg...it has nothing to do with knitting. A Rugg blanket is squares of wool fabric put together by crocheting the squares to each other. Like Ragg, Rugg has no French translation.
"laine chinee" is the easy one...flecked yarn, as in the tweedy yarns.
"laine effilochee" is a bit more difficult because the same word can mean more than one thing in French; however, the verb "effilocher" means to unravel, which can also mean frayed or worn. My guess, and this is just a guess, is that it refers to novelty yarns, the furry stuff, that looks frayed.
As far as I can tell, neither one has anything to do with Ragg wool.