China's beer industry, the most prolific in the world, yesterday struck back at reports that 95 per cent of domestically bottled beer contains formaldehyde.

　　The chemical, famously used to preserve Damian Hirst's controversial dead cows and known to cause cancer, does play a part in the brewing process, but does not pose a threat to public safety, Xiao Derun, director of the beer branch of the China Alcoholic Drinks Industry Association, told China Daily yesterday.

　　"Consumers need to know that the formaldehyde in beer is a different type from that in household chemicals, and this confusion has scared people greatly," he said.

　　Trouble began on July 5, when Beijing newspaper The Global Times printed a letter claiming to be from a beer inspector working for an unnamed company.

　　The letter said many Chinese breweries were using formaldehyde as an additive, and the anonymous inspector wanted the public to know.

　　Accompanying the letter was an investigative report that quoted Du Lujun, secretary of the beer branch of the China Alcoholic Drinks Industry Association, as saying 95 per cent of the country's beer contains the chemical.

　　According to Du, breweries use formaldehyde because it is a cheap way of preventing sediment from forming during storage.

　　Many other Chinese newspapers quoted the report, to the alarm of beer-drinkers across the country.

　　And the reports have also set alarm bells ringing overseas. On Monday the Korea Food and Drug Administration said it had decided to test Chinese beer imports for formaldehyde before allowing them to clear customs, and Japanese food authorities are reportedly following suit.

　　But, speaking to China Daily yesterday, Xiao branded the formaldehyde reports irresponsible. "It is utterly groundless to say this without explaining the facts clearly," he said.

　　According to Chinese law, the amount of formaldehyde in common beer may not exceed 2 milligrams per litre, and in "organic" beer it may not exceed 0.2 milligrams per litre.

　　There is no law banning beer from containing formaldehyde, Xiao said. Its use is allowed, and the association's annual nationwide survey found no domestic beer that exceeded the set limits, he added.

　　According to a China Business Times report, a 2002 survey of 19 domestic brands conducted by the National Food Quality Supervision and Inspection Centre found the average formaldehyde content to be 0.31 milligrams per litre.

　　Xiao conceded that some Chinese breweries still use formaldehyde, but insisted most of the chemical added during production was no longer in the drink by the time it reached consumers. A certain amount of formaldehyde is produced during the process of fermentation itself, he said.

　　Big beer companies accounting for the majority of the Chinese market, including Tsingtao and Yanjing, have stopped using formaldehyde in favour of other additives to ensure the quality of the beer.

　　Xiao also pointed out that a market survey has shown the formaldehyde content of imported beer to be similar to that of the domestically produced beverage.