The more interesting story there is the sort of corruption which allows for a) government-controlled/connected baby formula plant to get away with selling poison while b) being sufficiently protected by import regulations and government interference such that black market importation of baby formula one box at a time is cheaper than Johnson and Johnson hitting them with a container ship full of the stuff to take advantage of the market opportunity.
Government-control kicked in now and they demand 'cheaper' milk powder as the prices had actually been kept unnaturally high due to cartel. Prices have been lowered, Netherlands have been asked to open factories in China (or do quality checks). It is now cheaper, but I still import my Nutrilon from back home to feed my baby-child; cheaper and more trustworthy. Because even the package says Dumex and looks same as in the Netherlands, it is local milk and I am not so sure about the 'real or fake' question.
See this for example of interference:
http://www.nytimes.com/2013/07/05/business/global/2-companie...