Rescuers pulled six people out of the rubble, including two who died, in Bijie, Guizhou province, city authorities told the official Xinhua news agency.
Search efforts are ongoing and local authorities sent tents, quilts and camp beds to the site, the agency said.
Video of the landslide posted to the Twitter account of the official People’s Daily showed the side of a hill collapsing, with dirt rushing across the outskirts of the town as onlookers shouted in fright.
Another video showed people standing on top of massive boulders.
Landslides are a frequent danger in rural and mountainous parts of China, particularly after heavy rain.
In June and August, massive landslides in southwestern Sichuan province killed more than 30 and left scores missing.
In July, 63 people were killed by landslides and floods in the central province of Hunan. Some 1.6 million people were forced from their homes.
Last week, powerful Typhoon Hato killed 18 people as it tore across southern China, including Hong Kong and Macau.