The French dairy manufacturer was forced to withdraw some Karicare lines in August 2013 after Fonterra, which supplied its milk powder, announced the possibility that it contained botulism-causing bacteria, though this was found to be a false alarm.
Danone is currently in arbitration with Fonterra in Singapore after it revealed the recall had cost it an estimated US$395m in lost sales.
According to a Reuters report, the company will now focus on developing Aptamil and Nutrilon, two other baby formula brands, in the Chinese market. Karicare will continue to be sold in Australia and New Zealand.