Chinese-made milk powder is better in quality and half the price of imported products, said the national dairy association.
The results of a study were announced in an effort to promote the domestic industry and allay concerns stemming from the 2008 melamine scandal.
The research, commissioned by the China Dairy Industry Association, found formula made in on the mainland had more nutritional content than foreign brands, the Beijing Times said.
The research also said home-made products cost, on average, half as much as imported ones.
Random tests were conducted on 25 milk powder brands sold in Beijing and the capital cities of nearby provinces.
The results indicated that all 16 of the domestic products were in line with national nutrition standards. But three of the nine imported products failed to meet national standards regarding the lactose-carbohydrate ratio and calcium-phosphorus ratio.
Association chairman Song Kungang said none of the tested brands, homegrown or foreign, was found to have safety issues.
The milk powder industry has become a focal point of public anger over food safety in recent years after a spate of scandals.
A major crisis emerged in 2008 when a leading domestic brand was found to be using the industrial chemical melamine, usually found in plastics and glue.
The scandal sickened 300,000 babies and resulted in six premature deaths.
The milk powder endorsement by the leading dairy industrial association comes as mainland parents resort to buying the product in Hong Kong and overseas. Overseas milk powder suppliers and retailers have noticed the demand and several governments have issued restrictions.