Authors: Zhao Jingchuan, Sun Yitong, Nick Torres Corporate & Commercial Group KWM

Introduction

The Administrative Measures for the Registration of Product Formulas of Infant Formula Milk Powder (the “Measures for Formula Registration”) have played a vital role in the rectification and supervision of the infant formula milk powder industry in China as well as in the integration and development of the milk powder industry since October 1, 2016. Based on our practical experience in infant formula milk powder industry and insight into regulatory trends, this paper briefly introduces the characteristics, development and impact of China’s formula registration system on manufacturers.
Continue Reading Regulatory Trend of Infant Formula Registration

By Chen Bing  and Yang Yue King & Wood Mallesons’ Corporate & Securities group

Since the melamine milk scandal in 2008, there has been constant reform to the supervision of the infant formula industry. Registration of infant formula milk powder (“Infant Formula”) is probably one of the most significant changes. It will greatly affect all the industry players.

From 1 January 2018, the Infant Formula registration requirements in the new Food Safety Law came fully into force. Infant Formula products, either domestically manufactured or imported through general trade, must obtain formula registration before they can be sold in the PRC. This requirement will impact thousands of Infant Formula brands in the market – a great portion of which will not survive this change. 
Continue Reading New Era for Infant Formula in China

By Susan Ning, Kate Peng, Huang Jing and Li Rui

In May 2013, the National Development and Reform Commission (“NDRC“) initiated the investigation against several infant formula companies for the alleged violation of Article 14 of the Antimonopoly Law (“AML“).

This is the second investigation by NDRC against resale price maintenance (“RPM“).  Early this year, NDRC fined China’s famous producers of premium liquor, Kweichow Moutai Co Ltd. (Maotai) and Wuliangye Group Co., Ltd. (Wuliangye) in the amount of RMB 247 million (about USD 39.8 million) for RPM behaviors (Maotai/Wuliangye Case)i .  The current investigation is still ongoing and no penalty against any companies has been made. 
Continue Reading The Second RPM Investigation by NDRC within this Year