Mead Johnson to pay penalties to China

Mead Johnson (MJN.NYSE) said Tuesday that it will be coughing up US$33 million to China in penalties related to a price-fixing investigation, Reuters reported. Mead Johnson was one of several foreign baby formula makers targeted by the probe. As a result of the investigation by China’s National Development and Reform Commission, Mead Johnson and others cut prices on their baby formulas. Foreign formula is coveted in China, where public trust in domestic makers was severely damaged in a 2008 scandal. China will increase standards for Chinese baby-formula producers as Beijing looks to bolster the domestic market.