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Daily Sound Bite: Nestle Responds to Price-Fixing Probe by Dropping Prices

Nestle SA has agreed to cut the price of its infant formula sold in China amid an investigation in the country into price-fixing by foreign countries. Imported formula can cost significantly more than domestic products, while ongoing Chinese food safety problems leave parents skittish about domestic formula.

Nestle SA has agreed to cut the price of its infant formula sold in China amid an investigation in the country into price-fixing by foreign countries. Chinese consumers are caught in a quandry, as imported formula can cost significantly more than domestic products, while ongoing Chinese food safety problems leave parents skittish about the safety of Chinese-made products. Wang Guoliang, a Chinese construction worker and father, said,

"We are still buying imported baby formula even if it is more expensive, because we don't dare take the local Chinese brands. It would be terrible if the baby has a problem because of the bad quality of the milk."

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