The collision occurred on Saturday night in waters about 160 sea miles east of the Yangtze River's estuary, Xinhua news agency reported citing China's Ministry of Transport.
According to the ministry, all the Chinese nationals on the bulk freighter have been rescued.
Eight vessels have dispatched by the Chinese maritime authorities for search and rescue operation.
South Korea has dispatched a coast guard ship and a fixed-wing aircraft to assist in the search and rescue operation. (ANI)