Foreign-funded firms such as Amway and Mary Kay are still waiting for the final approval of their direct selling businesses in China. [newsphoto]

Direct selling giants such as Amway, Mary Kay, and Perfect have not gotten licences for direct selling from the government, though they applied earlier this year.

If they fail to obtain them before December 1, according to an announcement by the Ministry of Commerce and the State Administration for Industry and Commerce, they are liable to heavy fines or closure.

The Chinese Government in 1998 gave 10 foreign-funded direct selling enterprises a transition period, during which they were allowed to conduct their business in the model of fixed stores plus employing sales representative to sell their products. That grace period ends today.

According to the website of the Ministry of Commerce, up to yesterday only two of those 10 direct selling companies have obtained licences.

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