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The Ministry of Commerce has not stepped into the legal dispute between France's Groupe Danone SA and its China joint venture partner Hangzhou Wahaha Group Co, the ministry's spokesman Wang Xinpei said at a briefing today.

"I have noticed such reports (that the ministry is seeking to arbitrate the dispute) on the internet, but we should say these reports are not factual," Wang said.

Both parties should comply with existing rules governing companies in joint ventures, he said, adding that Chinese rules aim to protect both local producers and foreign investors.

The Wall Street Journal reported earlier that the Ministry of Commerce has asked Danone and Wahaha to submit information related to their dispute. 

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