The row took off after a Chinese translation of a poem written by last year's literature prize winner.
Chinese writer Li Li's version of a Tomas Tranströmer poem replaced the word "chanterelle", a popular mushroom in Sweden, with the word "caramel".
After Swedish academy member Göran Malmqvist, 88, criticized the translation, Li published a poem on his blog which Malmqvist became convinced was a personal attack.
As for the translation debate that seems to have kickstarted the argument, Li explained he changed words for it to make sense in the context.
"I swapped the word "chanterelle" in Tranströmer's poem because no one knows what a chanterelle is in China. A "caramel" made perfect sense in the context."