The blast rocked the restaurant in Yinchuan at around 9pm local time on Wednesday as crowds filled the streets on the eve of a holiday celebration.

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The explosion was caused by a leaking liquefied petroleum gas tank at the restaurant in northwestern China, according to a state-run news agency.

A witness described seeing a waiter collapse outside the eatery as thick smoke and a strong smell of cooking gas flooded the area.

At least seven people were being treated for burns and cuts from glass that shattered in the blast.

President Xi Jinping has called for stronger safety checks in the wake of the tragedy, Reuters reported.

It came as locals were gathering at the capital of the Muslim Ningxia Hui Autonomous Region to celebrate the Dragon Boat Festival holiday.

The night normally sees locals eating festive foods and drinking before boat races take place the following day.

Industrial accidents plague areas of China that suffer from a lack of government supervision, according to the AP.

Employers can worsen the issues by cutting corners with lax safety training in order to cut costs.