China Updates- Food Safety & Antitrust

Food Safety

In a move which will be welcomed by expatriates in China, not to mention most of the over one billion Chinese, the China Food and Drug Administration has issued the Measures for the Administration of Recall of Food Products. These will become effective on 1^st September, 2015. Whilst recalling dangerous food products might be seen as damage limitation rather than prevention, and as being for the future rather than today, it is at least a further step in the right direction, being the latest of several dating back to 2007 aimed at improving China’s food safety standards.

In the meantime, Primasia Corporate Services Limited has been happy to assist its French and Australian clients in particular to market their products in China to fill part of the huge gap in the market for safe food.

 Antitrust

In the latest in a series of swingeing fines levied against foreign companies, Mercedes Benz were fined RMB350m for fixing prices on luxury cars and spare parts. This follows fines against Chrysler, Audi and around 10 Japanese car companies, as well as a record US$975 million fine against Qualcomm, the US chip maker, and action against pharmaceutical companies such as Glaxo.

Chinese regulator (the NDRC) said that, in 2013 and 2014, Mercedes issued verbal pricing instructions to dealers to maintain minimum prices for its E- and S-Class sedans or face the risk of “reduced policy support”, and had issued similar instructions from as early as 2010 on the minimum pricing of some replacement parts.

In the face of accusations that foreign forms were being targeted, Chinese leaders as high as Premier Li have denied that foreign companies are being selectively aimed at in the antitrust enforcement campaign.

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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

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