The US fast food giant blamed its advertising company Leo Burnett for the error but issued a formal apology nonetheless.

"Even though the ad has no defamatory intent whatsoever ... we very much regret the incident and apologize to the public," the company said in a letter sent to the media after the commercial was pulled earlier this week.

In the ad, the man's discount coupon has expired and the vendor turns him down. The advertisement goes on to say people do not have to beg to take advantage of a McDonald's promotion.

State media reported that people found the advert insulting because it suggested Chinese people were so lacking in integrity that they would get on their knees to beg for a discount.

The advertising agency said the commercial was meant to be funny.

Last year another US multinational, Nike, fell foul of Chinese customers, sparking a wave of protest about a "blasphemous" television commercial.

The ad featured US basketball star LeBron James defeating a kung fu master, two women in traditional Chinese attire and a pair of dragons, considered a sacred symbol in Chinese culture.

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