Market regulator will investigate Gree's claim against rival Aux

An ongoing battle between two major air-conditioner manufacturers is heating up as a key retail promotion gala approaches on Tuesday.

Gree Electric Appliances Inc has accused Aux Group, of Ningbo, Zhejiang province, of producing and selling substandard air conditioners.

The State Administration for Market Regulation said on its website on Monday night that it considers the matter to be of great importance, and it has ordered local market regulators to investigate the allegation as soon as possible.