Police investigated Lord Sugar after a woman claimed a tweet he sent was racist.
The tycoon posted a photo of a Chinese boy wearing shorts made from watermelons, which went viral on China's equivalent of Twitter in August.
In a reference to one of the pictures showing the boy crying, Sugar joked: "The kid in the middle is upset because he was told off for leaving the production line of the iPhone 5."
Nichola Szeto was apparently contacted by police after she made a complaint on the social media site: ‘Everyone have a look at @Lord_Sugar racist tweets. My family are chinese you horrible t[***]. I thought Racism was illegal @metpoliceuk.’
According to the Mail on Sunday, Ms Szeto, from Liverpool, gave a statement to Merseyside police after they requested one from her.
Police analysed the tweet and came to the conclusion that because it was considered a ‘hate incident’ no further action would be taken.
Ms Szeto said: ‘I told the police I just wanted to let him know it was wrong.
‘They said they take this very seriously, but I said, “just leave it, I’ve complained now.” But they phoned back so I went to see them.’
The TaxPayers’ Alliance condemned the ‘wasting of police time’ and said that officers shouldn’t be ‘chasing every ill-thought-out tweet’.
Ms Szeto defended her actions in an extended tweet this afternoon directed at Lord Sugar : ‘I am of mixed English/Chinese heritage & my partner & children are chinese. What you wrote did offend me. I am not sorry for voicing my opinion because you would have done exactly the same if you were me.
‘Did I over react? Yes I probably did.’