The output and per capita consumption of China's dairy products have increased greatly; however, there has also been an increase in dairy safety issues in recent years. After the melamine milk scandal, China's government reformed the management of dairy products and associated laws to strengthen food safety regulations and raise technical standards to improve the safety of dairy products. Here, we review comprehensive relevant information on dairy supply, dairy product safety issues, and dairy product safety assurance systems in China. We discuss the features of the dairy industrial chain and analyze the key options available to China to improve dairy safety. At present, the dairy industry chain and the corresponding organization system of safety assurance are in a period of transition. The dairy industry chain is shifting from being decentralized and loose to intensive and compact. Meanwhile, the organization system of safety assurance is shifting from being under the sectional supervision of a multiagency coordination system to centralized supervision. In conclusion, the overall safety level of dairy products in China has increased after the melamine milk scandal.