A series of quality checks, including monitoring of baby formula products through electronic coding, were unveiled by Li at a cabinet meeting yesterday, as he called for tighter regulation on the industry, according to the state-run China Daily.
A surge in demand for formula in China sparked by fears over the safety of domestic milk powder has seen shop shelves around the world cleared out by Chinese buyers and unofficial exporters.
Distrust grew last year when another domestic manufacturer's formula was found to be contaminated with carcinogens, despite official pledges to clean up the industry.
"Under the food regulations, it is mainly producers that are responsible for safety, but under the regulations covering medicine, both producers and sellers are held responsible," China Daily quoted food safety expert Dong Jinshi as saying.
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He said Li's remarks reflect the Chinese government's determination to rebuild the tattered reputation of the nation's dairy industry, according to the report.
But buyers are sceptical of any products sold in China, including foreign brands packaged for the Chinese market.
China is by far the world's largest market for formula, says consumer research group Euromonitor.