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Chinese authorities seized 10 tonnes of toxic tofu sticks known to contain cancer-causing chemicals after a criminal gang sold nearly 100 tons of it into the local market of eastern China's Shandong Province on Sunday.

Officials issued a warning against buying tofu sticks following their raid based on a tip-off in an underground workshop where the toxic food was being made.

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However, authorities have discovered that several unscrupulous producers in the Zhangdian District of Zibo City have been adding a toxic ingredient known as rongalite.

According to reports, rongalite is an industrial bleaching agent that is being added to the tofu sticks to make them chewier and brighter-looking.

Reports also revealed that the chemical has been banned for use in food production due to its characteristic of emitting formaldehyde during the production process which can cause fatigue, vomiting, headaches and cancer when ingested.

Dried tofu sticks, commonly known as fuzhu in China, are popular ingredients for hotpot and cold meals.

"Workers were busy making fuzhu with utensils that were covered in dirt. The factory floor was filthy and there was a choking odor in the premises," Zhangdian Police Officer Zhang Qinchao stated.

Zhang also revealed that the raid team found bags filled with powder which was later confirmed to be 190 kilograms of rongalite.

After further investigations, authorities discovered that the factory was owned and managed by three cousins from Xuchang City, Henan Province, with the surname Liao and had only hired fellow villagers to keep the operations a secret.

According to reports, the factory was able to produce over 100 tons of toxic tofu which were mainly sold to the provinces of Henan, Shandong, and Jiangxi, while about 3,500 kilograms of fuzhu were sold to a grain and oil shop owner identified only with a surname Li.

Police have detained four people and are currently tracing all tainted tofu sticks in the market to avoid people from suffering from food poisoning.

So far, reports indicated that no one has fallen ill from eating fuzhu.