More than 3,700 firework plants have been shut down since local governments tightened safety regulations, according to China's top safety watchdog.
The move means China now has 4,921 firework plants, scattered across 20 provinces and regions, said a State Administration of Work Safety statement.
The administration will continue with its targeted crackdown to consolidate the industry, the statement said.
Many Chinese people like to set off fireworks or firecrackers to celebrate major holidays such as Spring Festival and Tomb-Sweeping Day.
The firework industry has witnessed several accidents due to lax safety standards, especially among small producers.
At least 291 people have been killed in firework accidents over the past two years, according to official data.
Earlier this year, China established a national union for the industry, hoping to help with mergers and acquisitions in the sector and assist the government in creating unified safety standards.