China has issued direct selling licenses to 19 companies since 2005, said sources with the Ministry of Commerce on Monday.

Fourteen of them are foreign-funded companies, including Avon China, Nu Skin China, Ningbo Sansheng, Oriflame Cosmetics China and Amway China, while the domestic companies include Nanjing Joymain, Beijing Rolmex Pharmacy and Guangdong Kangli Medicines.

Other companies have applied for the license and are still waiting for government approval, said the ministry.

In 2005, China mapped out regulations on direct selling in order to regulate the sector and prevent pyramid selling and open direct selling business as part of its commitment to the World Trade Organization.

Regulations limit direct selling to cosmetics, health food, sanitary products, body-building equipment and kitchen utensils.

Source: Xinhua