There was public anger after one of hundreds of pictures posted on the internet Wednesday showed a woman teacher, surnamed Yan, holding up a student by his ears, Shanghai Daily reported Sunday.
The child is crying in pain while the teacher is smiling in the photo. She is reported to have said she held the child in this way "just for fun".
Yan was detained on suspicion of provoking a disturbance. The other teacher, who took the pictures, was placed under a seven-day administrative detention.
Some other photographs showed a child being placed upside down in a rubbish bin and a child whose mouth was sealed with adhesive tape.
Authorities in Wenling city said they have transferred staff from other public kindergartens to the Blue Peacock Kindergarten to help it operate.
The latest scandal came just a few days after a female teacher in China's Shanxi province reportedly slapped a five-year-old kindergarten girl in the face for more than 10 minutes.