A new price-fixing investigation looks suspiciously aimed at tarnishing the reputations of foreign milk powder makers like Danone (Paris: BN) and Nestle (Switzerland: NESN), demonstrating one of the many unusual challenges that such firms face when doing business in China. Such negative campaigns against foreign firms are relatively common, and often involve real issues such as product mislabeling or other minor transgressions. The fact that these issues often become big news in the Chinese media reflects a subtle tactic by Beijing, aimed at undermining the reputation of such firms in the eyes of Chinese consumers who often trust the foreign brands more than their domestic rivals. Read Full Post…
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