China's food safety watchdog says no traces of the industrial chemical melamine were found in new tests of liquid milk sold domestically, as officials seek to restore public trust in milk supplies. The tests were carried out on 609 batches of milk products from 75 brands collected from more than two dozen cities around the country, the General Administration of Quality Supervision, Inspection and Quarantine said on its Web site. It was the second time in less than a week that China's food safety regulator said tests of liquid milk products showed no melamine contamination, although on Wednesday it said milk powder products for adults were found to be tainted.

Milk powder containing melamine has been blamed for killing four babies and sickening more than 54,000 infants with kidney stones and other illnesses in China.

The scandal has sparked global concern about Chinese food imports and recalls in several countries of Chinese-made products including milk powders, biscuits and candies such as the widely sold White Rabbit sweets, which have been pulled from shelves in the U.S., Europe and Asia.

The watchdog said in a notice dated Saturday it will soon start testing baby formula produced after the scandal broke in mid-September. Quality supervisors have been stationed in baby milk powder production facilities to oversee the process.

Chinese authorities believe suppliers trying to boost output diluted their milk, adding melamine because its nitrogen content can fool tests measuring protein content.

The Agriculture (web|news) Ministry, meanwhile, said it is providing subsidies to Chinese dairy farmers badly hit by declining demand for milk. Many farmers have been tossing out raw milk as they are squeezed by feed costs they can't recoup due to waning demand.

The ministry's statement did not give details of the subsidy plan.

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