Headed by their CEO Lu Zhicheng, managers of Tsinghua Tongfang's PC Department, Energy and Environment Department and Education Department have arrived in Nanjing where they are holding consultations with representatives from Suning's main business departments for a possible operations merger.

Lu Zhicheng and Zhang Jindong, CEO of Suning, have both said that a strategic cooperation may not come out of the discussions.

A merger of operations may help both companies, as they have complementary services. Tsinghua Tongfang hopes to sell its PC, television , DVD, edutainment products via Suning's platform, and Suning wants to develop its own brand by using Tsinghua Tongfang's development and research strength.

The details of any cooperation should be released in the coming days.