Children at the kindergarten reportedly had been fed pills, jabbed with needles and forced to strip.
A 22-year-old female teacher, surnamed Liu at a private kindergarten RYB Xintiandi. was taken into custody for allegedly abusing students, reported CNN, citing Beijing Police as saying in a statement.
The police gave no further details on the woman, other than her last name.
Both the detained teacher and the head of the kindergarten have been fired.
The allegations ignited a firestorm of public anger.
"There was serious breach of duty in our management," the statement said.
"We must bear responsibility, deeply reflect, and thoroughly investigate and rectify (our operations)," it added.
The company promised to provide psychological counseling to the victims. (ANI)