"Before the recent Lunar New Year, a major gift-buying time in China, Hong Kong announced an emergency two-can limit.
"On Friday [Mar 1], the daily purchase restriction becomes permanent, along with tough new penalties of up to two years in prison and a fine of $64,500.
Compared with China's, "Hong Kong prices are lower for many imported products [including baby formulas] because of the depreciating U.S. dollar (to which Hong Kong's currency is pegged) and lower tariffs.
My comment: It is hard for me to fathom. Under the theory of the invisible hand, importers will procure overseas higher quantity of baby formulas, so there should be no shortage, even if Chinese make a run of them.