On 12 March, reports came in that the US-based global supermarket chain Walmart had been summoned to “regulatory talks” (约谈) by Chinese authorities, including the Ministry of Commerce of China. The reason is, perhaps unsurprisingly, to do with the latest US tariffs imposed by the Trump administration.
A day before the news broke, there were already reports of Walmart pressuring some of its Chinese suppliers to cut their prices extensively (reportedly 10% for each round of tariffs from the White House) in order to offset the stress put on its costs by the tariffs. Chinese suppliers, in turn, banded together to reject the price cut and caused a standoff. The talks took place on 11 March, and the main message was, according to sources, that“Chinese businesses refuse to be offset for tariffs” and that if Walmart continues to pressure them, the authority will bring out more stern reactions than talks.
On Weibo, China’s Twitter-like platform, the topic “Authorities including the Ministry of Commerce host regulatory talks with Walmart” (#商务部等部门约谈沃尔玛#) made it to number 10 on the Hot Search list with 16.74 million views. Meanwhile, the hashtag “Walmart is completely replaceable for Chinese consumers” (#沃尔玛对中国消费者完全可以被替代#) reached number 9 with 17.67 million views. Netizens observe that although Walmart isn’t doing too well in China, Sam’s Club is still a cash cow for the group.
Their observation would be accurate, as Walmart’s impressive 27.7% growth in the Chinese market in Q4 FY2025 was mostly due to e-commerce and membership and many a big-box Walmart store closed down in the past year. With the large contribution this market has provided the group, it is likely Walmart needs China more than China needs Walmart. But of course, the ideal situation would be that US and Chinese businesses work together to weather the storm that is the Trump administration.
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