Kyrgyz security officials described the blast as a terrorist attack, the local AKIpress reports.
The driver of the vehicle reportedly died in the blast, Emergency Response headquarters told 24.kg.
Three embassy employees, all Kyrgyz nationals, were injured, Deputy PM Zhenish Razakov said, according to BBC. They suffered non-life-threatening wounds from shrapnel.
The vehicle reportedly smashed through the gates and exploded in the centre of the compound, close to the ambassador's residence, the Emergencies Ministry told Interfax, cited by RT news agency, which is funded by the Russian government.
Police also confirmed receiving reports of the explosion, saying that first responders have already been dispatched to the site, RT reports.
Screenshot via Google Maps Bishkek, Kyrgyzstan on the map
Several buildings at the compound were damaged and fragments of the car flew into the distance of 200 meters from the explosion, AKIpress reports.
Top Kyrgyz officials including the minister for emergency situations Kubatbek Boronov and Bishkek Prosecutor Kubanychbek Beshekeyev have arrived at the scene of the explosion, AKIpress reports.
AKIpress also quoted the chief of security at the Chinese embassy as saying that there are no injuries among Chinese nationals working at the Embassy - only the attacker died and he was alone in the car.
Forensic experts and the State National Security Committee personnel are working at the scene. Bomb technicians are examining the area, which has been cordoned off.
Video: #Explosion at Chinese #embassy in Bishkek, Kyrgyzstan kills 1, injures 2. The embassy has been cordoned offhttps://t.co/WYfY7SK6zv
The GKNB state security service said it was investigating the blast but provided no other details, Reuters reports.
Employees from the Chinese and nearby American embassy were evacuated, the BBC reports.