Chinese entrepreneur builds top milk company from scratch

From heavy debt to industry leadership, Leng Youbin, chairman of China Feihe, has steered one of the country’s largest infant formula producers to global success, navigating disruption and fierce competition along the way.

Feihe originated as a state-owned dairy factory in Qiqihar City of northeast China’s Heilongjiang Province. In 2001, Leng, then the factory director, took on over 10 million yuan (about 1.4 million U.S. dollars) in debt and launched a new venture with just over 100 veteran workers in the city.

At the outset, Feihe faced shortages of all kinds: capital, talent and market presence. To break through, Leng set his sights on Beijing, one of China's biggest markets, more than 1,300 kilometers away.

"When I first arrived in Beijing, I knew no one. We visited malls and saw only foreign brands dominating the shelves. That left a powerful impression on me," said Leng.

At the time, China's surging economy and rising standard of living were driving strong demand for high-quality infant formula. In 2006, spotting an opportunity, Leng set out to build large-scale dairy farms to meet growing consumer needs. To raise capital, he pursued a listing in the United States.

China's booming economy not only gave Leng the courage to make the bold move but also won the confidence of global investors. Following China's accession to the World Trade Organization, foreign firms ramped up efforts to capture the country's consumer market. Backed by brand recognition and research and development strength, they quickly dominated the high-end segment. According to customs data, China's milk powder imports soared from 98,000 tonnes in 2007 to 826,000 tonnes by 2016.

Confronted by formidable foreign milk giants, Leng wavered at one point.

"Once a foreign company came to us with an offer to buy Feihe for 4.8 billion yuan (about 670 million U.S. dollars), a 100 percent acquisition. We seriously considered it. I told the team to sleep on it before deciding. By morning, we decided not to sell. If we had, it would have almost marked the collapse of Chinese infant formula brands," he said.

Leng's decision coincided with a wave of policy support aimed at revitalizing China's dairy industry. Stricter quality regulations, innovation incentives, and reforms like the infant formula recipe registration system helped boost the industry.

"Strict oversight from government and industry regulators, rigorous market testing, company-imposed entry thresholds and the formula registration system have all set high standards for companies to upgrade. By prioritizing quality and scientific research, the country's strong measures have also promoted the industry's development," he said.

By 2022, domestic brands accounted for over 68 percent of China's infant formula market, and average milk yield per cow had reached 9.2 tonnes, double the 2008 level.

Crediting his success to favorable policies and market conditions, Leng believes the younger generation has even greater opportunities, thanks to rapid developments in science and technology and China’s vast domestic market.

"We benefited from government support for private enterprises and a booming market. Today’s younger generation is more knowledgeable and idealistic; they’ve grown up with the internet and artificial intelligence. With rising consumer power, I believe China remains the largest market in the world," said Leng.

Chinese entrepreneur builds top milk company from scratch

Global economic growth is projected to stand at 2.9 percent in 2026 and 3.0 percent in 2027, according to the Economic Outlook Interim Report released by the Organization for Economic Cooperation and Development (OECD) on Wednesday.

Growth in the advanced G20 economies, as well as in the G20 emerging-market economies, is projected to remain broadly stable, the report said.

The report also forecasted inflation levels for the two years, predicting that some major economies will see price rises that outstrip global growth levels. G20 headline inflation is expected to rise from 3.4 percent in 2025 to 4.1 percent in 2026, before easing to 3.6 percent in 2027.

In the advanced G20 economies, headline inflation is projected to rise from 2.5 percent in 2025 to 3.2 percent in 2026, before falling to 2.6 percent in 2027, while in emerging-market G20 economies it is expected to increase from 4.1 percent to 4.8 percent before easing to 4.3 percent.

The OECD noted that the projections are based on a technical assumption that Brent crude prices and TTF gas prices will peak in the fourth quarter of 2026 and then decline steadily through the end of 2027.

The assumed Brent crude price path is broadly consistent with the "short disruption" scenario in the OECD's June 2026 Economic Outlook, while the assumed gas price path is about 60 percent higher.

Persistent uncertainty over the evolution of the conflict in the Middle East remains a key risk to the baseline projections, the OECD warned, adding that constraints on exports through the Strait of Hormuz, additional disruptions to alternative export routes such as the Bab al-Mandeb Strait, or further significant damage to energy production facilities in the region could prompt a further sustained rise in energy prices and potentially lead to shortages of key commodities, particularly in net importing countries.

Low European gas reserves and uncertain scope for sustained further reductions in oil inventories in some countries could exacerbate supply disruption risks.

Further monetary policy rate adjustments may be needed, the OECD said, noting that faced with renewed energy price shocks, stronger-than-expected demand pressures, and above-target inflation in many economies, central banks need to ensure that underlying inflation pressures are durably contained.

The OECD also called for further structural policy reforms to help economies cope with future supply shocks, including diversifying energy supply, improving energy efficiency, enhancing product and labor market adjustment, and ensuring workers have adaptable skills.

Global economic growth projected at 2.9 pct in 2026: OECD