Rebels attacked a seven-vehicle convoy carrying Chinese engineers in Pakistan's Balochistan province on Sunday, as per media reports.
Pakistani security forces reportedly shot down two terrorists involved in the attack. Others fled the spot allegedly in an injured condition.
Two Pakistan security personnel were also injured in the attack.
An operation is underway to clear the area of violence as the gunfight has ended.
The attack on the convoy started at 9 am and lasted for two hours.
Explosions and gunfire could be heard across the port city of Gwadar in Pakistan following which all roads remained closed for traffic.
Gwadar is one of the focal points of the multi-billion China-Pakistan Economic Corridor (CPEC) with many Chinese workers working at the port.
In the past too, several militant attacks were carried out on projects linked to the CPEC.
This is the biggest attack against Chinese nationals after the suicide attack on a similar convoy in 2021.
The Baloch Liberation Army - Majeed Brigade, a militant group active in Balochistan, claimed responsibility for the attack.
The engineers were reported to be working for a Chinese construction company.
China is investing heavily in Pakistan under the CPEC project.
Balochistan, bordering Iran and Afghanistan, is home to a long-running violent insurgency.
"The ruptures within the militants' fold are getting wider by the day as our armed forces are courageously thwarting their nefarious designs. There is no reprieve for anyone who casts an evil eye on Pakistan," Senator Sarfraz Bugti said on X, formerly known as Twitter.
In a similar incident, one soldier was killed and four terrorists were shot dead during clashes in Khyber-Pakhtunkhwa (K-P)'s Bajaur District on Saturday night.
Baloch insurgent groups have carried out several attacks targeting the CPEC projects in the region in recent times.
Pakistan has seen an uptick in terror activities, especially in Khyber Pakhtunkhwa and Balochistan, after the outlawed Tehreek-e-Taliban Pakistan ended its ceasefire with the government in November last year.
The TTP, also known as the Pakistan Taliban, was set up as an umbrella group of several militant outfits in 2007.
Last month, as many as 12 soldiers of the Pakistan Army were killed in separate military operations in the Zhob and Sui areas of Balochistan.
This was the military's highest single-day death toll from terrorist attacks reported this year.
Previous attacks targetting Chinese nationals:
April 2021: A suicide bomb attack at a luxury hotel hosting the Chinese ambassador in Quetta killed four. The ambassador was unhurt.
July 2021: A bus carrying engineers was bombed killing thirteen people, including nine Chinese workers.
(With PTI inputs)