With the development of a commercial economy in Shanghai from the 1920s to the 1930s, imported goods such as milk and milk products in Shanghaichanged from being luxuries to items of public consumption. The modern hygienic concept involved in the consumption of milk and milk products led to a shift from the initial Western standard to commoditised large-scale production. Government, public opinion and the dairy industry played different roles in this process. After a historical retrospect on the history of milk in pre-modern China, this essay discusses the interaction between milk consumption and concepts of hygiene in modern Shanghai in the 1920s and 1930s. Next, it discusses the efforts in modern China to build upa modern state system during the process of developing modern standards of hygiene.