The network was targeting children from southwest China's Yunnan and Sichuan provinces and then sold them in other regions, said the Chinese Ministry of Public Security.
Police forces from 11 provinces were involved in the operation which led to the release of 92 children along with two women and detention of 301 suspects, it said.
Thousands of children and women are kidnapped in China every year by traffickers for which experts blame country's one-child policy and lax adoption laws, which they say have created a thriving underground market for buying children.
Despite progresses, anti-trafficking work is complex and difficult, Ministry said adding that it is cooperating with the Supreme People's Court and the Supreme People's Procuratorate in drafting a judicial document to impose harsher punishment on traffickers and buyers.
Parents selling their children will also be severely punished in accordance with law.