This regulatory adjustment is poised to have a considerable impact on dairy exports from nations like Việt Nam, whose companies currently incorporate reconstituted milk in their sterilized milk production destined for China. To maintain crucial market access, Vietnamese dairy companies must rapidly adapt their product formulations, re-engineer production processes, and meticulously revise documentation and labeling to align with China’s strict new requirement for exclusive reliance on fresh raw milk.

Products that continue to contain reconstituted milk will no longer be recognized as sterilized milk under the revised Chinese standard and will be ineligible for export under existing product codes. This change could severely limit market access for affected dairy exporters, forcing a strategic re-evaluation of their production and export models. The shift is not merely procedural but represents a fundamental change in China’s preferred dairy ingredient standards.

The ripple effects of this new policy extend to potential economic implications for exporting nations. Vietnamese dairy companies, for instance, may face increased operational costs due to the higher price of fresh raw milk, necessary adjustments to production lines, and inherent risks associated with ensuring a stable supply of fresh milk. These factors could adversely affect their price competitiveness and market share in China, influencing overall dairy economics for affected exporters.