Panamax bulker Dong Fang Sheng collided with a fishing vessel near Xiangshan, Zhejiang on Saturday.
The incident happened when the vessel was on its way from Tangshan to Ningbo and led to the sinking of the fishing vessel. All seven crew from the fishing vessel fell into the water.
The local maritime rescue centre sent patrol boats and coordinated nearby vessel to join the search and rescue operations and managed to save two of the crew, while the other five crews remain missing.
The 1990-built Dong Fang Sheng is owned by Fujian Orient Shipping, a shipping unit of state run Fujian Shipping Group.
Authorities have started investigations into the cause of the incident.