The blast happened Wednesday night in Yinchuan, the capital of Ningxia Hui Autonomous Region, due to a leakage of liquefied petroleum gas from the operating area of the restaurant, the report said.
The injured, including one in critical condition, are currently receiving medical treatment, according to the regional Communist Party committee.
Cause of the accident, which occurred before the start of the three-day Dragon Boat Festival holiday, is under investigation.
Chinese President Xi Jinping on Thursday demanded all-out rescue and treatment of the injured and enhanced safety overhaul after the accident, urging more efforts to ensure safety of the people's lives and property.
All regions and related departments should screen for and rectify all types of risks and hidden dangers, Xi noted.