China's infant formula companies have been encouraged to buy up overseas producers with the aim of targeting the mid to high end of their home market.
A statement from China's National Development and Reform Commission (NDRC), outlined China's aspirations for the local infant formula players on Monday.
"Encourage Chinese companies to buy foreign producers and set up production facilities overseas, so as to reduce cost of raw ingredients," the NDRC said, according to an English translation.
"Encourage Chinese companies to provide overseas and bring back in original Chinese branding. Encourage producers to broaden sales channels an differential to compete targeting