China’s government is moving toward tighter regulations on the country’s exported and imported dairy products. The inspiration for the regulations came after traces of the potentially harmful chemical dicyandiamide was found in imported dairy products from New Zealand. These regulations show the government is conscious of its citizens’ health and intent to raise their standard of living.
This act may also offer an opportunity for Chinese companies to improve their standings in the country’s dairy market. China’s confidence in domestic dairy products is very low because of its questionable quality and has resulted in a great majority of dairy to be imported – even if it costs significantly more money and time. However, this gives an opportunity to China’s dairy producers to reclaim more of the market.
Chinese dairy producers would be able to offer products at a cheaper rate with a cooperative government (placing higher tariffs on imports, lower taxes for domestic producers, etc.) which I believe would have a beneficial impact on the Chinese economy. Not only could products be at lower rates, but domestic expansion could also mean higher employment for the country’s citizens in the long run.
Source: China Daily – USA