The local maritime authorities were informed about the sinking last morning and requested the Donghai Fleet of Chinese People's Liberation Army Navy to assist them in the rescue operations, the state-run Xinhua news agency reported today.
The steel-hull boat, 42.6 meters-long and 7.6 meters-wide, sank 130 sea miles to the east of Zhoushan City, Zhejiang Province.
Three naval frigates were sent to the shipwreck site.
Another naval vessel carrying a rescue helicopter later joined the rescue.
Forty-one nearby fishing boats were also mobilised, it said.