Video footage posted online by the state broadcaster showed thick black smoke billowing from the vehicle, as passengers looked on from nearby.
The cause of the crash remained unclear. Xinhua said, however, that local officials believed an oil leak caused by the crash may have sparked the fire.
Traffic accidents are common in China. The World Health Organization estimates that more than 250,000 people die each year on the country`s roads.
Long-distance buses are popular in the country as a cheap way of traveling between cities, and competition between bus firms can be fierce.
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