China has invited Walmart to work with it over allegations that it forced suppliers to deeply lower prices, in order to shift the burden of US tariffs to Chinese businesses.
The number of Walmart stores in China has decreased from 412 in 2020 to 296 in 2024 - Photo: CNN
According to the media platform of China Central Television (CCTV) Yuyuan Tantian on March 12, the relevant meeting took place on March 11 with the participation of the Chinese Ministry of Commerce and retail giant Walmart.
Accordingly, retailer Walmart has been criticized for requiring Chinese suppliers to significantly reduce prices to offset the cost of tariffs imposed by the US on goods imported from China.
The report stressed that Walmart's unilateral demand for deep discounts could disrupt the supply chain, harming the interests of both Chinese and American businesses and American consumers. This action could also be considered a violation of trade contracts and disrupting market order.
The Yuyuan Tantian platform continued to emphasize that the unilateral US tariffs are hurting both China and the US. They warned Walmart that the consequences “will not stop at a summons” if the group continues to pursue a strategy of shifting the cost burden to Chinese businesses.
Earlier on March 6, Bloomberg News quoted a source as saying that Walmart had asked some Chinese suppliers, including kitchenware and apparel manufacturers, to reduce prices by up to 10% in each round of tariffs. This move is intended to shift the entire cost of tariffs that US President Donald Trump imposed on Chinese goods to Chinese suppliers.
Walmart's 10% price cut request is almost equivalent to the entire cost of the additional tariffs imposed by the US, putting Chinese businesses under great financial pressure, sources said.
US President Donald Trump has announced an additional 10% tariff on goods imported from China, effective from March 4, bringing the total tariff to 20%.
In response, China has implemented countermeasures, including increasing tariffs by 15% on US imports of chicken, wheat, corn and cotton, and imposing 10% tariffs on products such as sorghum, soybeans, pork, beef, seafood, fruits, vegetables and dairy products since March 10.
According to a report by Chinese financial economic website Yicai in June 2024, Walmart's revenue in China in 2023 reached more than 120 billion yuan (about 423,000 billion VND), helping the group hold the number one position in the list of top 100 retail chains in China.
Source: https://tuoitre.vn/trung-quoc-trieu-tap-walmart-vi-ep-nha-cung-cap-giam-gia-sau-20250312175214598.htm
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