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China to boost market share of domestic baby formula

Source:Global Times Published: 2019/6/3 21:13:41

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Nation to boost market share of domestic baby formula

Shoppers peruse the baby formula aisle at a supermarket in Haikou, South China's Hainan Province. Photo: CFP

The Chinese government said on Monday that it would take measures to improve the quality of domestically made baby formula, dubbed by officials as a key product concern for country's future, as the country heavily relies on imports.

The National Development and Reform Commission (NDRC), China's top economic planning agency, released an action plan that aims to improve the quality of domestically made baby formula and increase its market share to above 60 percent.

Officials will take action in areas such as standard-setting, innovation and quality control.

The government will also help companies to build professional production bases, as well as with acquisitions and mergers and international cooperation, NDRC said.

"[China will] support domestic companies to acquire or build milk sources overseas to lower the raw material costs," the plan read, adding that capable and reliable Chinese companies are also encouraged to produce baby formula overseas and export to China under their brands.

Foreign companies are also encouraged to build production bases in China and measures will be taken to ensure fair competition, it said.

After a major scandal in 2008 involving baby formula safety, Chinese parents turned to foreign brands. As a result, the market share of local brands plunged from 75 percent in 2008 to about 39 percent in 2015, according to media reports.

However, as Chinese demand for foreign baby formula rises, some countries have moved to restrict baby formula purchases by Chinese consumers to ensure their own supply. For example, in Germany, Chinese consumers are limited to buying only two boxes a person, causing frustration for some.

Others have also raised the issue as a crucial issue for China. They also called for improved domestic baby formula.

"[Baby formula] is a special food that concerns the happiness of hundreds of millions of families and the future of the nation," the NDRC action plan read.