In the News

Non-Tariff Barriers - China Toughens Dairy Regulations

Geoff Riley

14th July 2017

Here is a good example of non-tariff barriers in action.

In part the Chinese decision to toughen up regulatory compliance in the dairy sector is a response to the Chinese milk scandal of a few years ago which left hundreds of thousands of infants ill and led to a number of deaths. Sales of imported formula milk have surged into China as parents have shifted their parent due to the loss of trust in local brands.

According to the Financial Times, "international dairy companies will only be allowed to register a maximum of three brands in China, to prevent a proliferation of foreign brands crowing out domestic ones weakened by the 2008 melamine scandal." 

The end of the one child policy is likely to lead to a significant rise in demand for infant milk formula and many transnational brands have earmarked China as a market of huge commercial potential.

I've added below another example of non-tariff barriers into China affecting car makers

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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