China has banned a TV commercial advertising sportswear giant Nike Inc's merchandise on the grounds that it is an insult to the Chinese identity.

The commercial, entitled 'Chamber of Fear,' showed US basketball star LeBron James fighting with an animated kung fu artist.

The State Administration for Radio, Film and Television said in a statement on its website that the commercial "violates regulations that mandate that all advertisements in China should uphold national dignity and interest and respect the motherland's culture."

It added that the advertisement broke regulations stating that commercials cannot contain images that blaspheme the national culture of the country, and that it had already "received an indignant response from Chinese viewers."