Government regulations will force foreign companies to relabel their products in Chinese and in turn will force the consumer to accepts these changes. This is a good thing but I think that there is a dramatic difference in product preference between one with original English labelling and one with Chinese labelling. Also it may lead to even more counterfeit goods being produced. Part of the Chinese mentality is that if the labelling is in Chinese, it is no longer seen as an original foreign product.
Although banning imports is far fetched, over the last 2 years, local Chinese infant formula makers have suffered massive losses while foreign companies have profited, it is also in the government's interest to improve local manufacturing and protect their own industries. The tainted reputation of Chinese formula makers will not be easily regained, which is why many firms are now investing in agricultural assets in Australia despite many local objections.
In the end, the consumer will make the ultimate decision on which product to buy and if they cannot buy what they want, then they will buy something else.
BAL Price at posting:
$10.07 Sentiment: None Disclosure: Not Held