A Study of New Chinese Cosmetic Product Registration: Focusing on Technical Regulations for Pre-Market Approval

Abstract

Purpose – This study aims to analyze the impact based on the latest Technical Barriers to Trade from the Chinese government in the cosmetics industry, which is heavily dependent on exports to China, and discovers estimated difficulties to continue imports under new regulations. Design/Methodology/Approach – This study compared the cosmetic regulations and import standards of three major cosmetic importing countries. It was conducted through a literature review, especially in new regulations, Cosmetics Supervision, and Administration Regulations from China. Findings – First, it highlighted the challenges that Korean exporters face due to the different regulatory standards for cosmetics in different countries. The new ordinances required excessive information disclosure, product efficacy evaluation reports, and localization using only Chinese local laboratories. These requirements could cause duplicate inspections, leak core technology, and hinder the technological development and quality improvement of the cosmetics industry. Lastly, the absence of clarity on the basis and standards for protecting the safety data of cosmetic ingredients adds to the registration burden for companies to continue exporting. Research Implications – Korean cosmetics exporters are firmly positioned in the Chinese market with experience and world-class technology, but new Chinese Cosmetics Supervision and Administration Ordinance may impact export values. However, there is currently insufficient data to measure the impact of the ordinance. To become the world’s top cosmetics exporter, the Korean cosmetics industry needs a gradual approach to resolve China’s import regulations, and close cooperation between exporters and government agencies is essential. Future analysis may be possible with more quantitative data.