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.

　　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.