Li tendered his resignation to the Cabinet and it was accepted, Xinhua news agency said, making him the highest-profile political casualty yet in the mounting food safety crisis.

His resignation came as the health ministry released new figures showing that 52,857 children had fallen sick after drinking milk powder contaminated by the chemical melamine, a dramatic increase in earlier numbers.

Four children have died, previous government statements have said.

The ministry said 12,892 children remain hospitalised with kidney problems.

Li has been replaced by Wang Yong, who will leave his post as deputy secretary-general of the State Council, or Cabinet.

Also sacked was Wu Xianguo, the top Communist Party official of Shijiazhuang city, where tainted milk powder first surfaced in the Sanlu brand headquartered in the city, Xinhua said in a separate article.

Wu was dismissed for delaying the reporting of the scandal, the report said.

Li's tenure at the product-quality agency coincided with a wave of scandals that have tarnished China's manufacturing reputation.

Last year, the agency embarked on a wide-ranging effort to improve quality supervision throughout the country after a series of international safety scandals ranging from toys to pet food.

The latest scandal came despite a July 2007 pledge by Li to "address the fundamental problems behind issues relating to food product safety."

It has revived worldwide fears over Chinese products, with several countries recalling Chinese dairy goods and blocking further imports.

Melamine, normally used in making plastics, was first found in infant milk formula in Chinese markets, but has since been detected in a range of dairy products both in China and abroad.

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