China summons Walmart for forcing suppliers to cut prices deeply

China invited Walmart to work on allegations of forcing suppliers to deeply reduce 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 was 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 US businesses and US consumers. This action could also be considered a breach 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 clothing manufacturers, to reduce prices by up to 10% in each round of tariffs. This move is intended to transfer 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 the application of an additional 10% tax on goods imported from China, effective from March 4, raising the total tax rate to 20%.

In response, China has implemented countermeasures, including increasing tariffs of 15% on imported goods from the US such as chicken, wheat, corn and cotton. At the same time, it has imposed tariffs of 10% 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 maintain 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