China: MOFCOM approves foreign infant formula JV

Months after China faced a firestorm of criticism for alleged bias against foreign companies in its investigation of the infant formula market, reports say Chinese officials have granted clearance for a New Zealand firm to establish a joint venture in Australia.

China’s Ministry of Commerce approved New Zealand-based Fonterra to collaborate with Chinese firm Beingmate to launch an infant milk product company. The news was revealed on the Australian Securities Exchange and New Zealand Exchange websites, reports say. Australian officials had already approved of the joint venture.

Under Chinese law, Fonterra must hold a minority 49 percent stake in the operations, reports say. Beingmate will act as the distributor for the new infant formula products, produced under Fonterra’s Anmum brand.

MOFCOM’s approval follows months after Chinese authorities faced backlash for allegedly unfairly targeting foreign companies in its investigation of China’s dairy and infant formula market.

Full Content: Dairy Reporter

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