The knife attack took place early this morning in a dormitory of People's Liberation Army (PLA) 281 Hospital in the seaside town of Beidaihe, about 300 kilometres east of Beijing, state-run China Radio International reported.
A 27-year-old man, Li Xiaolong, who is working in the hospital's canteen, has been arrested for allegedly carrying out the attack.
Official media reported that Li, who is from Tangshan's Leting county in Hebei, had a history of mental illness and had been treated at hospitals in Tangshan and Beijing around 2006.
After the rampage Li returned to his dorm and stayed put there rather than escaping.
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The attack was similar to a series of such incidents reported from across the country in which knife wielding attackers went berserk and attacked children and people on the road or in malls.
All the knife attacks are blamed on people with mental illnesses and in a number of instances the attackers were stated to be disgruntled people.