China's dairy industry suffers from chaotic production and lax oversight, the government said on Monday as it announced toughened rules following the tainted milk scandal.

It's the latest move to bring calm after the massive scandal that caught major domestic dairies adding the industrial chemical melamine to disguise watered-down milk. More than 52,000 infants were sickened and four died. Several countries, including Canada, have recalled Chinese products that were found to be contaminated with melamine.

The government meeting, presided over by Premier Wen Jiabao, blamed lawless individuals and businesses for the country's latest food safety scandal, but also said the scandal exposed deeper problems.

"At the same time, this has exposed chaos in our country's dairy product production and distribution and serious shortcomings in oversight and administration," stated the official summary of the meeting.

The government is "determined to take in hand every link in inspection and administration from the field to the dinner table, so that the reputation of our country's food sector is restored and consumer confidence is enhanced," it said.

The cabinet announcement of rules intended to ensure the safety of milk products can be found on its website http://english.gov.cn/.

Beijing made similar vows last year after scares over tainted and dangerous foods, medical and pet-food ingredients, toys, tires and toothpaste made in China shook international confidence in quality controls.

Latest tests come back clean

Dozens of countries consuming products with Chinese dairy ingredients have undertaken bans, recalls or strict checks after melamine was also found in those products.

China says the latest chemical tests on milk have come back clean, and police said they have detained six more people suspected of crimes related to producing and selling melamine.

The arrests were made in Hohhot, capital of the northern region of Inner Mongolia, which is the country's main dairy-producing area, the official Xinhua news agency said in an overnight report. The arrests were made during an investigation into melamine contamination at Yili and Mengniu, two major dairy companies based there, it said.

Inner Mongolia Yili Industrial Group, Mengniu Dairy and Bright Dairy group were found earlier to have produced milk contaminated with melamine.

But the government's announcement came on a day that brought more bad news for China's battered dairy sector.

South Korea's food watchdog said it had found melamine in 10 Chinese dairy products and ordered them to be taken off shelves.

Iran announced a ban on imports of Chinese dairy products and ordered stores to remove goods containing those products.

Widely used in making plastic kitchen utensils, melamine can pose serious health risks if consumed in large quantities.

Dairy firms that produce substandard products or lack the necessary quality controls face closure, the Chinese government announcement said.

"The whole food sector must establish comprehensive quality standards ad improve testing and monitoring measures," it said.

With files from Reuters