In 2013, reforms to increase food safety in China prompted the China Food and Drug Administration (CFDA) to begin the process of revising the Food Safety Law (the Law). The first draft of the Law contained a proposal to restrict sub-contracting and OEM production of infant and young children formula foods. Recognising that such a restriction had the potential to result in up to a 20 per cent shortage in market supply, industry raised it concerns through the European Chamber.
The European Chamber engaged relevant government agencies by holding meetings, submitting numerous comments to legislators and organising a training programme. These steps resulted in the proposed block on OEM production of infant formula being rescinded. It also provided increased certainty and stability for businesses by expanding their choices of business model, and enriched product offerings in the market.
- Strengthened Stability for Business;
- More choices for business model;
- Enriched product offerings.