A test of 607 batches of liquid milk from 27 cities found the samples to be melamine-free, state-run media announced on Saturday.
The tests were the sixth that Chinese officials have carried out since the scare erupted in September after authorities discovered melamine in powdered infant formula.
Health experts say ingesting melamine can lead to kidney stones, urinary tract ulcers, and eye and skin irritation. They also say it can rob infants of much-needed nutrition.
In the past month, contaminated milk has sickened nearly 53,000 children in China, killing four.
Countries around the world have either banned the import of Chinese products containing milk or withdrawn products that contain milk from China amid concerns they contain melamine.
China's agriculture ministry said Saturday it will offer subsidies to dairy farmers hit hard by the shrinking demand for milk, the news agency Xinhua said.
Among them is the northern Hebei province that has earmarked 316 million yuan ($46.1 million) as subsidies. According to Xinhua, the subsidy translates to giving a farmer 200 yuan ($29) per cow.
Authorities have arrested 40 people in connection with the milk scandal, including two brothers who could face the death penalty if convicted.
Investigators suspect people watered down milk in an attempt to sell more of it and added melamine in order to fool quality checks. The toxic chemical is used to bolster apparent protein levels in diluted or poor-quality milk.
Others arrested include 19 managers of pastures, breeding farms and milk-purchasing stations. Chinese authorities have said those arrested were involved in a network that made and sold melamine.
Authorities have implicated 22 Chinese dairy companies in the scandal.
Melamine is the same industrial contaminant from China that poisoned and killed thousands of U.S. dogs and cats in 2007.
CNN
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