A suspected drug trafficker was shot dead in the street while another was detained by police in Guangzhou on Wednesday morning.

The incident took place in Dashi township, Panyu district, at about 5 am, when a police car collided with the suspects' vehicle after a road pursuit.

Drug enforcement officers from Foshan, about 20 kilometers from Guangzhou, capital of Guangdong province, opened fire when the men resisted arrest and attempted to run away. Police had pursued the suspects from Foshan.

The glass door of a nearby commercial building was shattered during the shootout. Police immediately blocked off the scene and nearby roads for further investigation.

The sound of gunfire attracted a large number of residents who mistakenly thought a gangster film was being shot in the area.

"The suspects did not back down when police warned them before opening fire," a witness who gave her name as Chen said.

She said the shooting "will help to deter criminals and reduce drug-related crime in the city, which has a high crime rate, particularly around the time of the Lunar New Year", which next year falls on Jan 28.

A police officer with the Guangdong Public Security Department declined to provide more details on the incident, saying that an investigation is ongoing.

The incident caused heavy traffic congestion in the surrounding area.

On Tuesday, Guangdong police announced they had busted six cross-border gun-smuggling gangs in a recent operation, detaining 200 suspects, including one from Taiwan.

More than 220 firearms, 15,000 rounds of ammunition and many raw materials used in the production of weapons were seized in the operation, which was launched in 21 cities this month.

The gangs purchased weapons from Hong Kong and sold them online to buyers across the country, according to a statement from the Guangdong Public Security Department.

The authority warned that those who own or sell weapons are in violation of Chinese law and pledged to spare no efforts in the fight against gun crime.