China's infant formula milk powder market has the greatest potential over the world. The “melamine scandal” made a deadly blow to Chinese consumer confidence. This review first analyses the new policy of infant formula milk powder in China. Recently, the government has issued a series of industry policies of infant formula milk powder, which are called the strictest policy in history. The policies have enforced strict regulations on formula registration, production mode, and traceability system, and so on. The current safety statues of infant formula milk powder in China are introduced. Joint efforts were made by all the industries, and the quality and safety of infant formula milk powder in China has significantly increased. Now, the sampling qualified rate of infant formula milk powder is nearly 100%. Meanwhile, this review indicates that problems such as lack of basic research, over-dependence on import material and equipment, and lack of consumer confidence still exist. At last, suggestions about the development of infant formula milk powder industries were provided. Reinforce of the basic research and improvement of the regulatory system are necessary to improve the quality and reputation of infant formula milk powder industry, which are also the key to restore the consumer confidence.