Why It Matters
If your brand contracts food production in China, your legal exposure just changed fundamentally. On December 1, 2026, new regulations from China’s State Administration for Market Regulation (SAMR) take effect that make brand owners jointly and severally liable for food safety alongside their contract manufacturers. For the estimated 60% of foreign food and beverage brands in China that use contract manufacturing, this is the most significant regulatory shift in a decade.
The rules apply to any company located in China — including foreign-invested enterprises (FIEs) — that commissions food production for domestic sale. They cover both OEM arrangements, where the manufacturer follows the brand’s specifications, and ODM models, where the manufacturer contributes its own technology or design while using the brand’s trademark. The only exceptions: direct imports from overseas and pure export-manufacturing operations.
The Details
Joint responsibility is the headline. Under the new measures, brand owners must vet their contract manufacturer’s qualifications, production processes, and capabilities before entering any agreement — and continue supervising them throughout production. This is not a passive check-box exercise. The regulations require ongoing supervision, regular on-site inspections, and documented compliance records that must be maintained for at least two years after the contract ends.
The specific obligations break down by role:
- Brand owners must verify the manufacturer’s food production license, assess its quality control system, and ensure its production conditions match the brand’s requirements. They also must report contract manufacturing arrangements to local market regulators — a new transparency requirement that did not exist before.
- Contract manufacturers must verify the brand owner’s business license and trademark registration, ensure they have the capability to produce according to specifications, and immediately report any food safety incidents to the brand owner and local authorities.
- Both parties are required to sign a written contract specifying food safety responsibilities, quality standards, and recall procedures. Without such a contract, production is effectively non-compliant.
Labeling requirements add another layer. Products made under contract must clearly indicate both the brand owner and the actual manufacturer on the packaging, along with their respective addresses and food production license numbers. This ends the practice of selling contract-manufactured goods under what appeared to be the brand’s own production lines.
Penalties are substantial. Violations can result in fines of up to 10 times the value of non-compliant products, suspension of production, license revocation, and — in cases involving serious food safety incidents — criminal liability for responsible individuals. With China’s food safety enforcement becoming increasingly aggressive (SAMR conducted over 1.8 million food safety inspections in 2025 alone), the risk of being caught in non-compliance is real and growing.
What You Should Do
Foreign food brands have a one-year window — until December 1, 2026 — to bring their contract manufacturing arrangements into compliance. Prioritize these four actions:
- Audit all current contract manufacturing relationships. For each manufacturer, verify their food production license, quality certifications, and recent inspection records. Identify any gaps in your contractual documentation — particularly around food safety responsibility clauses.
- Upgrade your supplier supervision program. The new rules expect ongoing monitoring, not just initial vetting. Implement a quarterly inspection schedule and establish a documented communication channel for food safety incident reporting.
- Update your product labels. If your current packaging only lists the brand owner’s name, redesign to include the manufacturer’s food production license number and address. Given lead times for packaging changes, start this now.
- Review your contract templates. Ensure every new agreement includes the mandatory food safety responsibility clauses. Existing agreements should be amended by Q2 2026 at the latest.
One Data Point
1.8 million food safety inspections conducted by SAMR in 2025, up 14% from 2024. The enforcement trend is unambiguous — and with the new rules making brand owners explicitly liable, foreign food companies that previously relied on their Chinese contract manufacturers to handle compliance can no longer afford to delegate that responsibility.
— China Gateway 360 —
Remote China market entry support, built around execution.
