Thick smoke was seen coming out of oil tanker "xinglongzhou 569" which carried 16 people.
Rescuers saved 13 people and were searching for three others.
The tanker sailed 90 nautical miles south of Shidao Island in Weihai City in the evening, state-run Xinhua news agency reported.
The fire is now under control and the tanker has been towed away, the report said.
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