China is widening its investigations into the food and dairy industry as it investigates Switzerland-based food processing and packaging company Tetra Pak Group for possible abuse of market dominance.
The State Administration for Industry & Commerce has organized more than 20 of its regional agencies to investigate the allegations, Zhang Mao, head of the market-monitoring agency, said at a forum Friday. It’s also investigating 23 cases of possible monopoly violations, according to the transcript of his speech on the regulator’s website.
The investigation into Tetra Pak is the latest sign of increased scrutiny into the operations of overseas companies in the world’s second-largest economy. Nestle SA and Danone’s infant-nutrition units are cutting some prices after the People’s Daily reported Tuesday that the government started investigating possible price-fixing by global producers of infant formula. Drugmakers including GlaxoSmith-Kline Plc are being investigated separately.
Tetra Pak was asked by the Chinese authorities to provide information about its business in China a few weeks ago, said spokesman Christopher Huntley. “We have no information about a formal investigation.” The information requested was “very broad” and the company is cooperating, he said, declining to disclose further details.
Tetra Pak, which entered the Chinese market in 1972, processes food including dairy and milk products as well as ice cream, according to its website. It has a research and development center in Shanghai and factories in cities including Beijing, Foshan, Kunshan and Hohhot.
Business, Pages 69 on 07/07/2013