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A photo released by China's official Xinhua news agency identified the ship as the Ocean Melody, which sails under a Liberian flag, according to the public vessel-tracking website VesselFinder.
A total of 42 people had been on the vessel, and 12 of them were safely evacuated, Xinhua reported.
The ship was docked for repairs at the Beihai Shipbuilding Co. at the port of Qingdao, a major shipping hub on the northeastern Chinese coast.
State media said that the fire broke out at around 11:15 am (03:15 GMT). It was not clear whether it had already been extinguished.
China’s President Xi Jinping issued “important instructions” to urgently conduct rescues of missing people.
Premier Li Qiang also urged the search for and rescue of "trapped" people, and for those injured to receive medical treatment, "and strictly prevent secondary disasters".
Qingdao Beihai Shipbuilding is a major shipyard that operates as a subsidiary of the China State Shipbuilding Corporation.
Xi warned that "all regions and relevant departments must draw profound lessons from this incident, thoroughly investigate and rectify all types of fire hazards".
This is a developing story and will be updated as soon as more information becomes available.
