Importing infant formula milk to China will now require an official approval starting 2018, the finance ministry announced, a reprieve for companies who expressed concerns that the new policy would take effect immediately.

The finance ministry released a list on April 7 of items that cross-border e-commerce firms are allowed to sell and banned non-registered imported brands. It further announced that imported infant formula milk from e-tailers would "temporarily" not need to get registration papers until the new policy being formulated takes effect in 2018.

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The announcement of the initiative caused share price gyrations especially to trade partners in Australia, as firms and investors were trying to assess its possible effects, according to Reuters.  

The ministry explained that the food administration is still working on the legislations governing how infant formula milk brands are to be registered. At the moment, formula milk imported from e-commerce platforms are not required to pass permits until 2018 when the new policy is scheduled to be implemented.

The clarification of the new policy comes after Australian Prime Minister Malcolm Turnbull together with 1,000 business leaders visited China this week.

"The Prime Minister received strong assurances of China's commitment to openness and reform, and the importance of e-commerce to the Chinese retail market," said a source familiar to the details of the meeting between Tumbull and Politburo member Han Zheng in Shanghai on Thursday.

Infant formula in China is one of the most in-demand products after Chinese consumers lost their confidence with the melamine-tainted scandal in 2008.

Moreover, just last week, counterfeited infant formula milk products were confiscated by the government. The Supreme People's Procuratorate found that suspects were allegedly repacking cheap milk powder and replacing labels with top brands to sell them off.

Tagsinfant formula, e-commerce, baby milk, food safety, imported milk, Finance ministry