"The DPRK side released the fishing boat and all the fishermen were safe and healthy," foreign ministry spokesman Hong Lei told a regular press briefing, using the North's official name.
The vessel's owner had not paid a ransom, he added, calling on Pyongyang to launch "a full investigation into the incident and make an explanation to us and take effective measures to prevent the reoccurrence of such incidents".
The seizure is the latest strain in the relationship.
Beijing is Pyongyang's sole major ally and its key provider of aid and trade, but China said it "firmly opposed" the North's atomic test in February.
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North Korea has for years done most of its banking through China, but with the imposition of stronger UN sanctions after the nuclear test, Beijing has come under greater pressure to tighten its control on Pyongyang's financial flows.
Reports said the boat's captors had asked Yu to pay the ransom into a bank account in the northeastern Chinese city of Dandong, a major hub for trade between China and the North.
The detention caused outrage online in China, with Internet users calling on Beijing to take a tough stance against Pyongyang, and accusing authorities of not trying hard enough to secure the men's release.
In an editorial today before the release was announced, the state-run Global Times, which often reflects nationalist opinion, said Beijing should "should let the North Korean side know we are angry".
The incident came a year after the return of 29 Chinese fishermen also kidnapped by unidentified North Koreans who had demanded a 1.2 million yuan ransom.
Those sailors were returned without ransom after the foreign ministry said it had contacted North Korea to try to resolve the case, Xinhua reported at the time.
"There is no clear demarcation of the sea border between China and North Korea," the Global Times quoted Lu Chao, a Chinese maritime researcher, as saying.