China medical regulator suspends cosmetics imports from Japan's Hoyu

CHINA’S medical regulator suspended imports from Japanese cosmetics company Hoyu Co after conducting an online inspection of its factory in Japan, Kyodo reported on Thursday (Dec 28).

Hoyu participated in the inspection voluntarily, which does not appear to infringe on Japan’s sovereignty, the report added, in a rare case of China inspecting a business outside its borders.

A spokesperson for Hoyu, which makes hair colouring products for consumers and professionals, confirmed that the inspection had taken place, but did not comment on whether imports had been suspended.

The Chinese regulator had coordinated with Hoyu over the inspection at a factory in Japan, the spokesperson said, adding that the company would take the appropriate action under the guidance of the Chinese authorities.

An announcement released on the website of China’s National Medical Products Administration (NMPA) in mid-November said it suspected Hoyu did “not produce cosmetics in accordance with the technical requirements stated in the cosmetics registration materials”, and had asked Hoyu to correct its process.

The NMPA did not immediately respond to Reuters’ request for comment.

Hoyu had consolidated sales of 51 billion yen (S$477.2 million) in 2022.

China is Japan’s biggest source of imports and its biggest export market. Imports from China totalled US$198 billion last year, while exports to China were US$145 billion, according to International Monetary Fund trade data. Nevertheless, relations have been turbulent over the past year.

During a summit with China’s leader Xi Jinping on the sidelines of an international meeting in mid-November, Japanese Prime Minister Fumio Kishida said he wanted to see stronger economic ties between the two countries “upon securing a business environment that would guarantee legitimate business activities”.

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The comment followed Japan’s requests to China to release a Japanese businessman after his unexplained detainment in March.

Japan’s fishing community has also suffered from China’s decision to ban aquatic products, after Japan released treated radioactive water into the Pacific Ocean this summer. REUTERS