THE WHAT? The European Union has raised concerns over the amount of detail foreign cosmetics manufacturers are required to provide in order to sell their products on the Chinese market, according to a report published by Bloomberg quoting anonymous sources.
THE DETAILS China’s new rules require companies to disclose their manufacturing processes, details of ingredients sourcing and formulas, which would then be stored on a database by the relevant regulatory body in China.
THE WHY? The EU is concerned that the level of detail required is akin to surrendering trade secrets and cannot be justified as no other country requires what amounts to a product blueprint for their safety checks. The additional administrative burden will also weigh heavily on mid-size and smaller brands. LVMH and L’Oréal declined to comment when contacted by Bloomberg.