France wants to work with China on common standards for cosmetics, after the European Union raised concerns that Beijing’s requests for companies like L’Oreal and LVMH to store their product information in its’ database could end up surrendering trade secrets under the guise of product safety.
(Bloomberg) — France wants to work with China on common standards for cosmetics, after the European Union raised concerns that Beijing’s requests for companies like L’Oreal and LVMH to store their product information in its’ database could end up surrendering trade secrets under the guise of product safety.
French Finance Minister Bruno Le Maire will travel to China from Friday to discuss economic and financial cooperation, including intellectual property issues in the luxury and cosmetics sector.
Le Maire expects to discuss setting up a joint structure to encourage the development of common standards for cosmetics’ efficiency claims and safety, according to an official in his ministry who asked not to be named in line with government rules. These standards would then determine the conditions under which cosmetics made by French companies can be sold in China, the official added.
Developing joint standards could be an alternative response to China’s decision to adopt rules that will require cosmetics firms to supply data spanning from ingredients to details of manufacturing processes, the sourcing of raw materials, and the precise composition of formulas.
Much of the information would be collected and stored in a database managed by Chinese authorities. Bloomberg first reported last month on the EU’s concerns.
The EU, and the US even more so, have long complained that certain policies and practices in China could lead to the transfer of technologies and intellectual property. Still, EU companies have little choice but to comply with the regulations if they want to access the massive Chinese market.
Leading French beauty groups include L’Oreal SA and Christian Dior owner LVMH Moet Hennessy Louis Vuitton SE. There is no evidence or indication to suggest that China would be using the information it collects from cosmetics companies for malign purposes.
Some three months after Emmanuel Macron traveled to China, and on the heels of the French president’s trip to the South Pacific, Le Maire will also meet with executives of Chinese automaker BYD Co. to tout France’s attractiveness for industries. The company is considering building a car plant in Europe.
Le Maire plans to discuss climate change, food security, how to reform global finance and will also meet with executives of XTC New Energy Materials, which has pledged to produce electric-car battery components in northern France along with French nuclear group Orano SA, according to the official.
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