A series of milk-related scandals over the past years have dented confidence in local brands
Food giants Nestle and Danone have said they will cut prices of some of their infant milk formula products in China.
The move comes a day after China launched a probe into alleged price fixing by foreign infant milk makers.
Demand for foreign brands has surged in China after tainted milk scandals resulted in distrust of local rivals.
Nestle's unit, Wyeth Nutrition, will slash prices by as much as 20%. Danone said it was co-operating with the probe and was preparing a price-cut proposal.
Nestle also added that it would not raise prices of any new products over the next year.
"Wyeth Nutrition has always respected and been willing to abide by China's laws and regulations, and is actively cooperating with the anti-monopoly investigation into the company," the firm was quoted as saying by the AFP news agency.
According to some estimates, foreign brands now account for about half of all infant milk sales in China.
Nestle, Danone, Mead Johnson Nutrition and Abbott Laboratories are among the firms that being investigated by the China's National Development and Reform Commission.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23176085#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
