Setting off fireworks and firecrackers is common during holiday celebrations in China, especially around Lunar New Year, which fell on Tuesday.

While many larger cities, including the capital Beijing, have banned the practice in recent years -- in part due to pollution -- towns and rural areas are often filled with the sounds of exploding firecrackers and "missile" fireworks for days on end during the holiday period.

"At approximately 2 pm on the 18th, there was a fire and explosion at a firework and firecracker shop in Zhengji town" in Hubei province, CCTV said, citing local authorities.

"The fire covered an area of around 50 square metres and has already resulted in 12 deaths."

The cause of the explosion is under investigation, CCTV added.

On Sunday, an explosion at a fireworks shop in eastern China's Jiangsu province killed eight and injured two.

In response to that incident, the Ministry of Emergency Management urged fireworks enterprises nationwide to strengthen supervision and undertake a "full inspection" of safety risks and hazards.

It also warned citizens against unsafe practices like test-firing or smoking outside of shops.

Industrial accidents are common in China due to lax safety standards.

An explosion at a biotech factory in northern China's Shanxi province killed eight people this month.

And in late January, an explosion at a steel factory in the neighbouring province of Inner Mongolia left at least nine people dead.