China has set aside 1.1 bln usd to improve food safety by 2010 and plans to give more power to regulators in order to allay fears about its exports following a series of scandals, the Financial Times reported.

The spending plan, which was put into effect two years ago but was only announced by the State Food and Drug Administration yesterday, includes plans for a new laboratory and enhanced inspection facilities for monitoring food and drug safety.

The announcement by Chinese government was the latest in a series aimed at restoring confidence in Chinese goods after the discovery of safety problems involving toothpaste, tires, toys and seafood.