The accident at Mount Dujuanshan, a tourist destination in Jinggangshan, was caused by an equipment failure, a city government spokesman said.
At least 219 tourist were stranded in their cars for six hours as traffic was stopped following the accident, the official was quoted as saying by state-run Xinhua news agency.
The stranded tourists touched ground when the services resumed after several hours.
The four injured were taken to hospital and are stated to be out of danger.
Late Chinese leader Mao Zedong had established a revolutionary base there in 1927.
A round trip on the on the 5,200-metre cableway costs 160 yuan (about USD 26 for each adult.