A riot broke out close to a scenic city in northern China when a man hired dozens of bussed-in club-wielding people to help settle a dispute with a company, state media reported Saturday.

The incident happened Friday morning when more than 150 people blocked the gates of an agricultural firm in Wangjia village of Shanxi province, near Pingyao, one of China's best-preserved ancient cities, the Xinhua news agency said.

The protest was organised by a man identified as Duan Qijun, the foster son of a 61-year-old employee at the company who had died from a heart attack the previous week while at work.

The company had paid for his funeral, but Duan wanted more, and recruited three busloads of people from the nearby city of Taiyuan, equipping them with wooden clubs and handing them up to 200 yuan (29 dollars) when they arrived.

The protests prevented staff at the company from entering or leaving, but eventually police intervened, detaining 77 of the protesters. Duan himself escaped and remained at large Saturday, Xinhua said.

A police official in Pingyao said she did not know about the incident when contacted by AFP Saturday.

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