"Yesterday afternoon, a strong tornado occurred in Suqian, Jiangsu Province... causing casualties and property loss in certain areas," state broadcaster CCTV said.
The tornado affected more than 5,500 people, with 137 houses collapsing, according to "preliminary statistics" cited in the report.
More than 400 people have been temporarily relocated because of the twister, state media said.
Video footage shared on social media by the state-run People's Daily showed high winds whipping debris around above residential buildings, as well as a street strewn with fallen signs and other objects.
China saw record-breaking downpours and weeks of historic heat this summer, with scientists saying such extreme weather events are being exacerbated by climate change.
Whole villages in Jiangsu were levelled and at least 98 people were killed in 2016 after the region was hit by a storm with hurricane-force winds and the worst tornado in half a century.
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