Manufacturers will be limited to selling only three brands of infant formula in China under new rules submitted to the World Trade Organisation, as Beijing authorities seek to tighten supply chains and improve food safety. International and domestic producers will face the same restrictions, which are expected to come into effect in the first half of this year and the move is likely to reduce the number of formula brands sold in China by 80%. Following the country's 2008 infant formula scandal, hundreds of imported brands flooded the market and a raft of tough regulations have been implemented to restore confidence in the safety of locally-made products. The government has also announced plans for stricter controls on foreign companies that sell baby formula, including banning them from using Chinese trademarks or logos without prior approval.
Manufacturers will be limited to selling only three brands of infant formula in China under new rules submitted to the World Trade Organisation, as Beijing authorities seek to tighten supply chains and improve food safety. International and domestic producers will face the same restrictions, which are expected to come into effect in the first half of this year and the move is likely to reduce the number of formula brands sold in China by 80%. Following the country's 2008 infant formula scandal, hundreds of imported brands flooded the market and a raft of tough regulations have been implemented to restore confidence in the safety of locally-made products. The Chinese retail infant formula market is forecast to grow to $25bn by next year.