From what I know, it is because of export control and regulation. Nutricia, the Dutch milk powder company, cannot easily sell Dutch milk powder to China becaus

From what I know, it is because of export control and regulation. Nutricia, the Dutch milk powder company, cannot easily sell Dutch milk powder to China because import/export regulations don't easily allow them to do so. So they opened a store in China. But because of Chinese food regulations they cannot use the original formula. But consumers distrust the Chinese store because the formula has been altered. So people keep buying "real" Dutch milk powder fron smugglers.