The move is also expected to stimulate local demand in China for imported infant milk powder which is currently three times the price of local products.
It's not hard to see why Chinese companies are so keen to leverage New Zealand's "pure" branding after spending a couple of days in Beijing this week.
The city has been bathed in an unusually acrid smog.
Images of New Zealand with its clear blue skies (used to attract Chinese tourists) certainly resonate here.
New Zealand-sourced infant formula - packed in cans complete with pictures of pure snowy-clad mountains or green rolling plains under clear blue skies - are already sold in Shanghai supermarkets courtesy of the Shanghai Bright Dairy joint-venture with Canterbury's Synlait.
The NZ brand imagery is set to be rolled out across China as more Chinese dairy companies reveal plans to build processing facilities in New Zealand.
Surely Fonterra should have pride of place rather than the Chinese brands?