This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Posted: 12:49 PM- BEIJING - The idea of Coke and Pepsi working together to introduce cola to an uninitiated foreign country is unbelievable.

But that's essentially what the marketers of tropical juice drinks - and vitamins, skin-care products and nutritional supplements - are doing this week in China.

Normally, Nature's Sunshine, NuSkin, Tahitian Noni and USANA executives would be strategizing a way to cut into each other's profits. But in meetings with leaders of the State Food and Drug Administration Monday, the Utah companies banded together to ask Chinese regulators to consider comparing their rules to those in other countries.

It's a strategy meant to streamline China's rules with those in the rest of the world and potentially ease the approval process for foreign-born homeopathic remedies and natural products. Already, this week-long trade mission in China has turned traditional business competitors into unlikely partners.

"When we come in to China, we have to play by their rules and we have to play by their rules together," said Shaun McKnight, new market development director for Nature's Sunshine. "We want them to know, we're not just going to mix this in our garage, rip off an area and leave."

The coalition has formed in part to assuage lingering doubts about direct-marketing companies in the wake of a flood of pyramid schemes that gobbled up many Chinese investors' life savings. Eight years ago, the country outlawed door-to-door selling. The ban was lifted three years ago as part of China's ascension to the World Trade Organization.

But the Chinese government still is skittish. And western companies - and their marketing models and products - are relatively new to China.

Along with XanGo, the five Utah supplement companies signed on for Gov. Jon Huntsman Jr.'s first trade mission to China have varying degrees of experience doing business in the country. NuSkin, as one of only three foreign companies with a direct sales license, is furthest ahead. The company already has many products cleared through China's testing and registration requirements.

Outside NuSkin's flagship store in downtown Beijing Monday, Jin Zhang waited in line for 30 minutes to order a facial cleanser made with papaya.

"It's low acid - good for the skin," the government worker said.

Other Utah companies are at various steps along the way to introducing a product to Chinese consumers. Nature's Sunshine is in the middle of a Chinese testing regimen for four of its products, including Liquid Chlorophyl, Zambrosa, Nature's Noni and TNT, a drink supplement. McKnight said the company hopes to have all four approved and a license to sell them within the next year. And USANA's Asia- Pacific Vice President Bradford Richardson said his company has between 20 and 25 products it is considering submitting for SFDA approval.

China is in the process of liberalizing many of its rules for supplement approval. But NuSkin Vice President Richard Hartvigsen said the Utah companies have to be vigilant to keep up with constantly changing regulations.

"The laws were more inscrutable before," Hartvigsen said. He said Chinese regulators' request Monday for feedback about their rules was refreshing. "It's easier than some countries. We have to make sure we continue to communicate."

At Monday's meeting the allies offered to provide research and studies from professors at Asian universities to back up their applications for SFDA approval. Government regulators asked the companies to study how different habits and diet could change a protein drink or herbal supplement's effect on a Chinese consumer.

"We're open to learning," said Richardson. "We have to come into this market and work to operate at a legitimate level. If one of us has a problem, it could reverberate to other companies. It's not in anyone's interest to be an island." walsh@sltrib.com" Target="_BLANK">walsh@sltrib.com

*********************

U.S. officials warn companies against becoming "China drunk"

The first day of Utah's China Trade Mission included a reality check from the U.S. Embassy's Commercial Service.

Commercial Attache David Gossack warned the Utah companies Monday not to become "China drunk," letting their excitement about the business potential of China's 1.3 billion consumers cloud their judgment. He said many U.S. companies end up becoming partners with unscrupulous mercenaries - "the first guy in a nice suit" - who have little or no experience and fewer connections.

"China's a place where there are lots of people making lots of claims. Some are true; many are not," Gossack said. "Keep your common sense about running your business. Don't do anything you wouldn't do at home."