Licences Revoked From Infant-Formula Makers In China

More than a third of China's infant-formula makers have had their licences revoked by the nation's r…

More than a third of China's infant-formula makers have had their licences revoked by the nation's regulator of food safety. The China Food and Drug Administration said on Friday that it granted production permits to 82 companies out of 133 that had applied, as it completed a six-month assessment that formally ends on Saturday.

The review represents six years of work invested into the reconstruction of China's dairy industry, after a scandal over melamine-tainted baby milk in 2008 cast doubt on local brands: six infants died, and 300,000 others fell ill. Officials in Beijing have attempted to remold the industry, in part to force it to compete more effectively with foreign products.

Ma Chunliang, the head of a supervisory department within the administration, commented on developments:

"On the question of consolidating these 51 companies, we are coordinating with the industry ministry on how to approach it. Consolidation will increase as we step up supervision."

Of the 51 infant-formula producers that were rejected, 23 had asked for extensions for further review, said Bi Yu'an, a supervisor with the administration. It wasn't immediately clear when the government would decide to permit the extensions or not.

The Ministry of Industry and Information Technology said last year that it wanted to shrink the sector to 50 manufacturers by 2018.

Administration officials credit tighter restrictions, including the certification process and more stringent spot checks, for an excellent record in the past year.