China's efforts to regulate food production and safety in small enterprises and stores have paid off. Li Changjiang, head of the national quality watchdog, made the statement during an inspection tour in Jiangsu Province.

Li Changjiang inspected a number of flour mills, food processing plants, markets, and farms with milk producing cows. Most of them have licenses and receipts for purchasing raw materials, but problems still exist.

Li Changjiang said, "Some flour mills make dried noodles with very white color, it's bad for people's health."

China has about half a million food manufacturing enterprises, and over two thirds of them are small-scale with less than ten staff. They are the main targets the government is aiming at to improve food quality and ensure food safety.

Li Changjiang said, "For those food manufacturers which make low quality or counterfeited products, we will definitely close them."

Li suggests some small food enterprises should merge so they can enjoy mutual benefits.