Japan's Meiji quits Chinese milk formula market

Japanese dairy giant Meiji (2269.TYO) is withdrawing its baby milk business from the Chinese market, South China Morning Post reported, citing a company statement. The company cited rising production costs and intense competition as the reasons for its new move. But some industry experts believe the situation may be more complicated, including fallout from the Fukushima nuclear disaster and tense China-Japan relations. Meiji, which entered the mainland market in 2007, was well received by many mothers as “a brand more suitable for Asian babies.”