Electronics giant Foxconn Technology Group has denied reports that a riot took place at its factory in Chengdu.
The Taiwan-based Want China Times reported that hundreds of workers from its factory were arrested after a clash with security staff.
Want China Times (WCT) said the clashes erupted on Monday night after protests against security workers.
Foxconn, the world's largest electronics maker, employs up to 120,000 people at the Chengdu plant, which mainly makes LCD displays.
But Foxconn says the disturbance was an isolated incident involving a dispute at a restaurant.
In a statement the company said:
"We were informed by local law enforcement authorities that late Monday night, several employees of our facility in Chengdu had a disagreement with the owner of a restaurant located in that city.
"We were also informed that the employees subsequently returned to their off-campus residence, owned and managed by third-party companies, at which time a number of other residents also became involved in the disagreement and local police were called to the scene to restore order.
"Foxconn is cooperating with local law enforcement authorities on their investigation into this incident."
The company, which makes products for companies including Apple, has been the focus on intense criticism over its working conditions.
A recent Students and Scholars Against Corporate Misbehaviour report said that intimidation and labour violations "remain the norm" despite efforts by Apple and other companies to improve conditions and drive down overtime.
Up to 20 or 30 workers can share just two or three room apartments, the report said and many workers are still forced to stand.
Last year an explosion at a Foxconn plant in Chengdu killed three people working on an iPad 2 production line.
"We want everyone to know what we are doing, and we hope that people copy. We've put a tonne of effort into taking overtime down," Apple CEO Tim Cook said recently.