Is It Possible for China to Centralize Infant Formula Procurement?

Recently, a hearsay¹ was circulating on social networks. It was said that on a teleconference hold by Firmus, a researcher from a well-known global company raised a question “Will China start to centralize infant formula procurement?” Although the authenticity of the saying was not confirmed and some also took it as a joke, this question still sparked heated discussion among stakeholders in China’s infant formula sector. Opinions are mainly divided into three groups. A few people think the government will adopt this measure to reduce the cost of raising a child in order to increase the number of newborns. However, many believe it is unlikely to centralize infant formula procurement in China since infant formula products are quite different from items like medicines. The remainders felt it’s hard to say, but they tend to believe it might be possible.