France, China to Work on Regulatory Framework for Cosmetics

France and China have agreed to work together on improving the regulatory environment surrounding cosmetics to protect both market access and product safety.

(Bloomberg) — France and China have agreed to work together on improving the regulatory environment surrounding cosmetics to protect both market access and product safety.

Both countries will set up a working group that will hold its first meeting in France before the end of the year and try to harmonize regulations, the French finance ministry said Saturday. Topics of discussion will include collaboration on intellectual property including product information and counterfeit goods, as well work on standards and inspection.

French Finance Minister Bruno Le Maire is in China to discuss economic and financial cooperation. His trip follows President Emmanuel Macron’s visit in April.

Read more: EU Raises Alarm Over Chinese Demands for Cosmetics Trade Secrets

The European Union has raised concerns with China about the level of detailed product information that cosmetics companies like L’Oreal and LVMH have to provide to sell their goods in the world’s second-biggest economy, Bloomberg reported on June 1.

China is imposing rules making cosmetics firms 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 is collected and stored in a database managed by Chinese authorities.

Read more: France Wants to Work With China on Joint Standards for Cosmetics

Bloomberg also reported that European companies are concerned they may be forced to surrender trade secrets under the guise of product safety, according to people familiar with the situation, who asked not to be identified discussing confidential information. There is no evidence that China is misusing the information it collects from cosmetics companies, the people said.

The EU as well as the US have long complained that certain policies and practices in China may 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 Chinese market.

(Updates with details from statement in second paragraph.)

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