The Ministry of Commerce (MOFCOM) on October 15 called on baby formula importers to be more accurate when recording sales data and for no monopoly in the industry, which has been plagued by quality and price-manipulation scandals.
The MOFCOM vowed to provide more convenient approval procedures for qualified importers, but told them to set reasonable prices and eradicate price manipulation and other moves that amounted to unfair competition.
In August, Chinese authorities fined six baby formula companies that operate on the Chinese mainland, namely Biostime, Mead Johnson, Dumex, Abbott, Friesland and Fonterra, for a total of 670 million yuan ($108 million) following an anti-trust investigation.
The National Development and Reform Commission said formula producers set minimum resale prices for distributors and punished those who sold their products at lower prices by suspending supplies or ending contracts. |