Baby formula makers jump at China probe

Foreign makers of baby formula said they will reduce prices in China by up to 20% following Wednesday’s news of a probe into possible price-fixing and anti-competitive practices in China, Financial Times reported. Nestlé, among the manufacturers targeted, said that the company’s move to “improve” pricing was to address regulators’ concerns on affordability. The price reductions will reportedly take effect on Monday and last through 2014. Danone is also preparing a price-cut proposal. The announcement of a probe from the National Development and Reform Commission triggered a global frenzy, prompting rationing in UK and Australian supermarkets, and prison sentences being handed down to baby formula smugglers in Hong Kong.