The demand for baby formula has caused a shortage in China.
In April 2021, China experienced a shortage of baby formula after the government cracked down on the practice of buying and selling milk powder. The government had banned the practice in April 2019, but it was only when they increased their enforcement that people started to notice the problem. This led to an increase in demand and a subsequent shortage.
The ban was introduced after a scandal involving Sanlu Group Co Ltd., which sold tainted milk powder to customers. The scandal caused six babies to die and hundreds more to become ill with kidney stones and other health problems. This led to a public outcry over food safety standards, as well as calls for higher fines for companies that violate food safety laws.