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China Infant Formula Sector Today: China's Phase 2 Plans

We can consider the period beginning in 2013 and ending at the beginning of 2018 as the first phase of China's dairy sector/IF sector reform. Phase 1 was initially unveiled through vague rhetoric expounded by China's State Council in the 12th 5-year Plan and further expanded on during the 12th NPC sessions running from 2013 - 2018. At the beginning of 2013, China realized large-scale structural reform by disbanding several regulatory authorities, forming new more powerful authorities in their place, centralizing regulatory authority and reducing redundancy in its food regulatory administration. We saw the formation and elevation of the CFDA, NHFPC etc. In the years that followed, we saw significantly beefed up pre- and post-market regulation and and supervision including: CNCA manufacturer audit/registration requirements, new products standards, new stringent product testing and sampling ratios, stringent post-market supervision, development of new trade channels, product registration and a host of other technical barriers to trade and regulations all of which significantly impacted market access requirements.

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