The coronavirus was found on ice cream produced in Eastern China.
According to the government sources, this prompted a recall of cartons from the same batch, reports Associated Press.
The company - Daqiaodao Food Co. Ltd - which is situated in Tianjin, a municipality adjacent to Beijing, was sealed.
A city government statement said that its employees were also being tested for coronavirus.
However, there was no indication anyone had contracted the virus from the ice cream.
Most of the 29,000 cartons in the batch had yet to be sold, the government said.
It said 390 sold in Tianjin were being tracked down and authorities elsewhere were notified of sales to their areas.
The ingredients included New Zealand milk powder and whey powder from Ukraine, the government said.
The Chinese government has suggested the disease, first detected in the central city of Wuhan in late 2019, came from abroad and has highlighted what it says are discoveries of the coronavirus on imported fish and other food, though foreign scientists are sceptical.