China's Ministry of Commerce has warned two of China's biggest consumer retailers over their price war.

This came after Suning Appliance and e-commerce website 360buy.com began offering massive discounts online.

The Ministry spokesman Shen Danyang says there are written laws and regulations on reduced price promotions. The Law Against Unfair Competition says an operator shall not sell goods below cost for the purpose of excluding competitors.

The Anti-Monopoly Law forbids promoting goods below cost. The Price Law also forbids dumping goods to exclude competitors or to monopolize the market.