Police officers shot and killed the suspect, Wang Zhihua, 45, after he smashed the forklift truck he was driving into dozens of cars parked along Xingfu Road in the city of Yantai, the Yantai Public Security Bureau said in a statement on Sina Weibo on Monday.
Many vehicles were damaged, and the case is still under investigation, it said.
Online videos showed Wang, driving a blue forklift truck, repeatedly push cars along the road at a very high speed. Guardrails were damaged.
A car was seen being lifted by the truck and being thrown into nearby vehicles.
Some pedestrians threw stones at the driver in an attempt to stop his movement but were unsuccessful. Several gunshots could be heard in the online videos.
Wang was identified as a resident of Suihua city in Northeast China's Heilongjiang Province, the police statement reads.
An employee onlooker from a vehicle maintenance shop told The Beijing News, "The forklift also ran into a police vehicle. It's fortunate that the officer escaped but the motor was damaged. Police kept speaking to the driver but failed to stop him, until gunshots were heard."