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A knifeman holding a blade to a hostage's throat was shot dead by a police marksman with a single bullet.
The 29-year-old suspect, named only as Liao, had tried to steal from the convenience store, but police were called and arrived before he could flee.
Armed with a knife he grabbed shop assistant, Miss Zhang, around the neck and laid out his ultimatum to police.
Liao said he wanted 100,000 RMB - about £11,000 - and a small car to make his getaway.
He gave officers just 10 minutes to meet his demands.
Outside the shop in Fuzhou, eastern China, a SWAT team had arrived and were taking their places around the building.
