Source: Bloomberg
The European Union put forward concerns about the regulations of Chinese cosmetics companies, because Beijing requires L'Oreal, LVMH and other companies to provide detailed product information if selling goods in China.
China will implement this regulation in stages. Cosmetics companies must provide data such as raw materials and production process details, raw material procurement and formula composition.Most information is collected and stored in the official database managed by China.
People who are not famous revealed that the main concern of European companies is that China may surrender business secrets under the guise of product security.An EU official who requested anonymous anonymous stated that such concerns have been mentioned in the recent dialogue between Chinese and EU officials.
Industry experts said that the information that these companies were required to share far exceeded most of the other markets.China's regulations are equally applicable to domestic enterprises. Compared with the EU, China's regulations in this area are much higher, and officials require enterprises to submit key information about Chinese data servers.In the European Union, such data are processed by enterprises by themselves.
Experts say that the process of adapting to the new mechanism is very time -consuming and more resources need to be used.At the same time, they acknowledged that, in view of the huge scale of the Chinese market and its importance to enterprises, EU companies have no choice but can only abide by relevant regulations.
Gerald Renner, a director of the industry lobbying agency Cosmetics EUROPE responsible for scientific and technological supervision and international affairs, said in an interview that China's requirements for information disclosure have reached the level of "extreme meticulous".
He added that some people are worried that it may force enterprises to provide China with "detailed information about blueprints about cosmetics products."
COSMETICS EUUROPE includes L'Oreal, LVMH and other beauty companies.Representatives of L'Oreal and LVMH Group do not comment.The National Drug Administration of China did not reply to Bloomberg's comment request.
No evidence or signs show that China will use information collected from cosmetics for malicious purposes.
An industry experts said that the requirements for disclosure of more information can also be regarded as hidden protectionism, because more resources need to be used in order to comply with regulations.People familiar with the matter said that the degree of disclosure is equivalent to the secret of the product manufacturing.
COSMETICS EUROPE's Renner said there was no evidence that intellectual property was stolen, but he warned that "any company would worry about business secrets may be used by competitors, and we can only hold the best expectations."
