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Tetra Pak probed by China for ‘market abuse’

China is investigating global packaging giant Tetra Pak for "abusing" its dominant market role, an official said Friday, the latest in a series of probes aimed at foreign companies.

Published: 5 July 2013 13:55 CEST

The head of the State Administration for Industry and Commerce gave no

specific details of the inquiry, but said it covered 20 provinces and cities.

“The administration has filed a case against Tetra Pak on suspicion of

abusing its market controlling position,” Zhang Mao was quoted as saying at a

meeting, according to a transcript posted online.

Tetra Pak China, whose parent is headquartered in Switzerland, confirmed a

request for information by the government and said it was cooperating. A spokesman for the firm declined to comment further.

Tetra Pak has more than 23,000 employees and its packages are available in

170 countries. It is part of the private Tetra Laval group, which is owned by the Swedish Rausing family.

According to Forbes’ latest billionaires list, four members of the family are among Sweden’s six richest people. Several of them live in Britain.

News of the investigation came after state media said earlier this week that another Chinese government agency has launched an “anti-monopoly” investigation into several foreign baby formula makers over high prices.

The National Development and Reform Commission (NDRC), China’s top economic planner, is targeting Nestle unit Wyeth Nutrition, France’s Danone, Mead Johnson Nutrition, Abbott Laboratories and Dutch firm Royal FrieslandCampina.

Chinese consumers prefer foreign brand dairy products following a 2008 scandal in which tainted baby formula killed six children and sickened more than 300,000.

The NDRC also said this week it would investigate 60 pharmaceutical companies over their pricing, including several joint ventures with foreign firms, among them Britain’s GlaxoSmithKline.

Tetra Pak’s products include packaging for milk. The company has supplied Chinese dairy giant Mengniu and participated in a programme to boost sustainable dairy farming in China, company statements showed.

Tetra Pak entered the China market in 1972, according to its website. It

has a research centre in Shanghai and packaging material plants in several

Chinese cities.

AFP/The Local/pr

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China derides Copenhagen democracy meet as 'political farce'

Demonstrators gathered outside the Copenhagen Democracy Summit on Tuesday. Photo: Emil Helms/Ritzau Scanpix

The Copenhagen Democracy Summit was held Monday and Tuesday in the Danish capital and organised by the Alliance of Democracies, an organisation targeted by Beijing sanctions in March and founded by former NATO boss Anders Fogh Rasmussen.

In addition to Taiwan’s President Tsai Ing-wen and Hong Kong democracy activist Nathan Law, Danish Foreign Minister Jeppe Kofod also participated in the forum by video link, which Beijing said violated “the one-China principle.”

“This summit is a political farce,” the Chinese embassy in Denmark wrote in a statement published on Tuesday. “Inviting those who advocate Taiwan and Hong Kong ‘independence’ to the meeting violates the one-China principle and interferes in China’s internal affairs,” it said.

“Some hypocritical western politicians are good at meddling in other countries’ internal affairs and creating divisions and confrontation in the name of ‘democracy’ and ‘freedom’. They are bound to fail,” it added.

At the conference on Monday, Kofod said it was “deplorable” that Beijing had imposed sanctions on 10 European individuals and organisations in response to EU sanctions on Xinjiang officials over their actions against the Uyghur Muslim minority.

Like most countries, Denmark applies the one-China principle — under which Beijing bars other countries from having simultaneous diplomatic relations with Taipei — though it does maintain relations with Taiwan.

Cut off politically from the rest of China since the end of the Chinese Civil War in 1949, the territory is self-governing but is not recognised by
the United Nations.

Beijing considers Taiwan a rebel province that will one day return under its control, by force if necessary.

China’s sabre-rattling has increased considerably over the past year, with fighter jets and nuclear-capable bombers breaching Taiwan’s air defence zone on a near-daily basis.

“Our government is fully aware of the threats to regional security, and is actively enhancing our national defence capabilities to protect our
democracy,” Tsai told the conference in a video address on Monday. US President Joe Biden is expected to present his China strategy soon, as
calls mount for him to publicly commit to defending Taiwan militarily in the event of a Chinese attack.

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