Ever since the successful economic reform and implementation of open market policy in China, the food industry has developed tremendously into a sophisticated speciality fats market. Solid fats such as dough fat, margarine, shortening, palm stearin and animal fats have emerged as important ingredients in the food processing industry. Margarine processing technology was introduced into China in the early 1980s and by 1984, the manufacturing capacity of margarine and shortening recorded was about 20 000 t yr-1. The built up capacity reached 150 000 t in 1996, and increased further to 300 000 t in 2001. The oils and fats industry went through changes after China gained WTO accession in late 2001. Foreign-funded enterprises entered China increasing the capacity of margarine, dough fat and shortening production and it has reached 1 million tonnes per year.