Rainer Gaertner, Daimler's trucks and buses president in the country, also allegedly used pepper spray on bystanders who intervened.
Chinese media said the incident took place in a Beijing car park on Sunday.
Daimler said it was "a purely private issue, which has now been resolved in an amicable manner".
The argument, involving strong language, began when Mr Gaertner cut into a parking space in Beijing's well-to-do Shunyi suburb ahead of a local driver, reports said.
