A tug boat sank in the Yangtze River in East China's Jiangsu Province Thursday, the Jiangsu Maritime Safety administration said.
The administration said many people were feared missing but did not give an exact number. Two crew have been rescued from the water.
The boat was on a trial voyage when the accident happened.
The maritime administration said the shipyard had not filed a trial voyage application, which is a legal requirement.
The water rescue center in Jiangsu sent 27 boats to search for the missing crew.
Jiangsu Party Secretary Luo Zhijun ordered the authorities to put great effort into the search and rescue mission.
An investigation team has been despatched to the location of the incident.
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