A mother of four hacked her children with an axe and killed them with pesticide because she could not afford to feed them, it has been reported.
Yang Gailan, 28, allegedly murdered her children, aged between three and six, outside their home in Agushan, in China's Gansu province.
She then committed suicide by drinking pesticide, the local government said in a statement.
After returning home from work Ms Yang's husband, Li Keying, also took poison and died, police said.
According to local statistics more than half the population in Agushan live under China's poverty line.
Ms Yang's children were not covered by national medical insurance or allowed to attend schools as they were not registered on the nation's vast Hukou residence system until last year.
Local media reported that the family were also excluded from China's poverty relief scheme and had to survive on crops.
Yang Gailan's story has attracted national attention and was the most searched subject on Chinese social network Weibo.
One user wrote: "Through this tragedy, I see the corrupted local officials, I see the cold and selfish people, and I see the desperate and helpless family.
"It has revealed a hard truth of this country that the most vulnerable are treated with smear rather than sympathy."
Another added: "What's more terrifying than poverty is the loss of hope and faith.
"That is the extreme desperation of helplessness."
Others criticised Yang Gailan, calling her a murderer.
According to the World Bank, China still has more than 200 million people living under the poverty line.
The Chinese government has long vowed to tackle poverty.
While world leaders gathered for the G20 summit in the prosperous city of Hangzhou just a week ago, China's inland provinces have suffered from increasingly severe inequality of economy development.
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