TThe ad led to anger among many Chinese people and the fashion house had to cancel a fashion show in Shanghai.
Chinese retailers pulled D & G products from their stores and websites, while some celebrities publicly criticized the brand.
The row was rekindled when Stefano Gabbana, co-founder of the fashion house, placed a laughing poopemo on his private Instagram account and referred China to "a land of the shit".
The company insisted that his account was maliciously hacked.
Last month, the model that appeared in the advertising campaign said it had almost destroyed her career.
"I feel guilty because I caused the disruption," said Zuo Ye. "I never expected that this one time would almost ruin my modeling career."
Promising that she would "grow from this experience," she said she was hurt because they were accused of mocking Chinese women.
It is not just Italian brands accused of racism and prejudice.
In 2011, John Galliano, the British designer, was dismissed as creative director of Dior, the French fashion house, after swinging anti-Semitic and racist insults by a couple dining in a Parisian brasserie.
Later he blamed his addiction to drugs and alcohol for the tirade and said he could not remember what he had said.