The authorities in Shanghai, Guangzhou and Tianjin are examining the companies that import dairy products from New Zealand as the products may contain toxic chemical.
The Quality watchdogs and Shanghai Customs stated that the products that are found to contain the toxic chemical will be sealed.
This move comes after the discovery of the toxic chemical, used on pasture to reduce greenhouse gas emissions and nitrogen leaching.
Two of the agricultural chemicals manufacturers in New Zealand have temporarily suspended the sales of dicyandiamide (DCD) after low levels were found in dairy products.
In Shanghai, baby formula manufactured by Abbott was found to contain the raw material from New Zealand. But, the manufacturer noted that it did not use powder from New Zealand's Fonterra, which is involved in the scandal.
Meanwhile, baby milk powder brands MeadJohnson and Wyeth have not mentioned the source of their raw material. The milk powder products were marked as 100% imported dairy source.
MeadJohnson claimed that it has imported raw material from several countries such as United States, Australia and New Zealand, and its products were safe and its products are safe and comply with the national and international standards.
However, Shanghai's market watchdog has not yet ordered local supermarkets and stores to remove the dairy products that contains raw dairy material from sale.