Japanese milk maker Meiji suspends formula sales in China

Japanese milk maker Meiji Dairies announced on Thursday the suspension of milk formula sales in China, due to fierce competition and rising costs.

The sales of Cherish formula will continue until the current inventory runs out, according to the company's Chinese website.

Other products, such as chocolate, will not be affected, according to Meiji Seika, a candy producer based in Shanghai.

Meiji is one of the largest milk makers in Asia. The sales volume in China was enormous until the 2011 earthquake which brought radioactivity contamination concerns.

Industry insiders believe the company's market share in China is not big, and the action will have a limited impact on the market.