The recall was initiated after General Administration of Quality Supervision, Inspection and Quarantine detected high levels of mercury in several batches of Yili baby formula.
While the quality watchdog screened samples from 715 infant formula products from across China, only the products manufactured by Yili were found to be contaminated with mercury.
According to the company, this recall affects only Quan You baby formula produced between last November 2011 and May 2012, while the company's other products are not affected.
The company noted that it is investigating the source of contamination and added that it would release relevant information promptly.
High levels of mercury in food products can damage the central nervous system and lungs, and may lead to birth defects, and the sources of contamination include contaminated packaging, additives made from fish, and pollution from coal-fired power plants.
This recall comes a day after the government introduced measures such as tougher supervisions and harsher punishments, in order to ensure food safety.
China has been hit by a number of food safety scandals over the years, especially in the dairy segment, which can attributed to the fragmented nature of the industry and poorly controlled supply chain.
In order to ensure the safety of milk supply, several Chinese companies are shifting to large-scale farms - recently Mengniu Dairy announced its plans to invest CNY3.5bn ($552m) to shift from small suppliers and source all its milk from large-scale farms.
