China unleashes giant trade war tit

Via Bloomie comes the trade war for teets:

A2 Milk Co. led declines among infant-formula providers in Australia and New Zealand after China unveiled a plan to boost local output and reduce reliance on imports.

China aims to exceed 60% self-sufficiency for baby formula and improve the quality of domestic brands in its $27 billion infant-formula industry. Authorities are seeking to bolster consumer confidence following a deadly milk scandal in 2008.

…The newly announced plan doesn’t entirely try to shut out foreign companies. It will support domestic dairy producers in acquiring or setting up overseas bases for milk supply, encourage foreign dairy firms to invest in China as well as tighten regulations on the milk-powder imports and online sales platforms.

Encourage foreign firms to share their IP with Chinese competitors, in other words. Adieu Bellamy’s et al:

But, says Gottiboff, we must join with them, Gandalf:

…It’s fascinating that once again the state of Victoria is at the cutting edge of India-Australia relations, as it is in the Australia-China tangle. Australia should have joined China’s belt and road initiative when it was not so controversial. It has been left to Victoria to hold the Australian flag.

Or commit treason, depending upon your perspective.

Comments

    • DominicMEMBER

      Saw a glamorous Chinese couple filling baskets with powdered formula at Chemist Warehouse this morning — I thought there were limits but maybe that has all stopped now.

      • Thanksfully they enforce the limits at Coles – I think 4 tins each – I was about to do a citizens arrest if they didn’t. But the daigou just got on the blower and had 3 friends meet her at the checkout so they could clean out the store’s entire stock properly.

  1. Ronin8317MEMBER

    The Chinese don’t have problem producing milk, they have a HUGE problem with trust. The whole ‘self sufficiency’ is a non-event, so I have no idea why this even made the news.

      • kiwikarynMEMBER

        Could be difficult, since both NZ and Australia have a Free Trade Agreement with China. Just how many countries does China want to start a trade war with? It might be aimed at reducing the market share of the current #1 and #2, both of which are US companies, but I doubt that non-US companies will see much change in attitude. As for foreign companies investing in China – one word is all that is required there – “Fonterra”. I doubt many international companies are going to be lining up to throw away good money in the same manner.

    • Mining BoganMEMBER

      The old family dairy farm since the 1870s converted to beef years ago. We’re not the only ones. That horse has been long bolted.

  2. I hope this helps get rid of the swarms of fkn Sunday-morning raiders at the local colesworth. Revolting to witness.

    • I suggest that this will only increase the black market. as mentioned above it is about perception.

  3. Sure, for big producers you have an issue. But for those small import/exporters, their margins are about to go through the roof! The kind of economics any drug cartel boss will happily explain. Get ready for Coles trolleys full of formula destined for ‘vibrant migrant communities’

  4. John Howards Bowling Coach

    Organised Crime in Australia has long been into the Formula and Milk Powder racket for export to China. I predict it will start to be once again the domain of the Daigou as there will soon ben containers turned back at the port of arrival in China as that’s how the CCP play the game, hold up and frustrate any trade at their whim. They have long been trying to acquire most of the Dairy Suppliers into China and have done pretty well in that caper, they dominate Synlait the number 2 in the huge NZ Dairy export market. State Owned Investment so they’ll never receive a blockade… Watch for their competitors though, Fonterra have had their share of headaches getting stock through the ports, surprise surprise…

    • kiwikarynMEMBER

      The port hold up was directly related to the Fonterra botulism scare. Fonterra have had bigger headaches with its Chinese subsidiary Beingmate failing to meet quality controls on Chinese made IF.

  5. Possibly less toxic than the NZ or Australian milk powder product which gives Asians diarrhoea, makes their kids fat & flabby & then diabetes long term.

    Melamine (inceases nitrogen) was used to mimic protein as they watered down the milk product & it only killed about 6 Chinese infants as their kidney filtration blocked up – the others got a bit sick but no real harm.

    Milk powder used to be pig food in NZ until it was remarketed as a fetish vanity for Chinese to have ‘white skin & long straight legs’ as the white man secret cow juice.

    It’s not for the children – the communist mum working in factory relying on western clean food for the baby in the 16 hour a day childcare battery farm nursery..
    Or the Chinese female conceit who refuse to breast feed as they think it makes them peasants again.

    Nope.

    The whole Chinese family sits outside in the gutter, the old toothless granny & grandad – phlegm spitting out their TB on the footpath under the yellow sodium streetlights..

    The stooped mother & broken down father, the fat little emperor spoilt brat son – and out comes the status symbol to show off to the neighbors…
    ‘the milk powder tin’ – carefully wrapped in plastic (so they can refill or resale the tin) and the hot water teapot & little cups – then the ceremony to gulp down the white man secret powder juice.

    Diarrhoea later, obesity & then long term diabetes.
    And that’s the natural milk powder product.

    Like I said the diluted Chinese made product cut with some thickners & protein emulators is probably more healthy for them.