Chinese authorities have held discussions with Walmart Inc after the US retail giant demanded that local suppliers cut their prices, reports said yesterday, as the wide-ranging effects of US tariff hikes begin to sink in.
“A source revealed to us that on March 11, the [Chinese] Ministry of Commerce and other relevant departments held talks with Walmart,” reported Yuyuan Tantian (玉淵譚天), a social media account run by state broadcaster China Central Television (CCTV).
“The reason for the talks was Walmart’s demand for significant price reductions from some Chinese suppliers, attempting to shift the burden of US tariffs on China onto Chinese suppliers and consumers,” the report said.
Photo: Reuters
Earlier this month, US President Donald Trump raised the 10 percent blanket tariff he previously imposed on Chinese products to 20 percent, citing Beijing’s continued failure to stem the flow of deadly fentanyl precursors.
China responded by slapping its own tariffs of up to 15 percent on a range of US agricultural goods, including soybeans, chicken and pork.
The CCTV-affiliated account said that it “believes that there are several key points worth noting from this discussion,” including that Walmart’s demand for price cuts “may violate commercial contracts.”
“If Walmart insists on this course of action, the consequences for the company will go beyond just a discussion,” it added.
The ministry did not immediately confirm the talks with Walmart.
Separately, the China Chamber of Commerce for Import and Export of Textiles in a statement called on US retailers to “solve international trade problems fairly and reasonably.”
The body said it had recently received reports from members that large US firms had asked Chinese suppliers to lower their prices.
“We are further verifying the situation. If the situation is true, we will take positive measures to safeguard the legitimate interests of member companies,” the statement said.
It said it had taken note of the recent discussion between Chinese authorities and Walmart, adding that it hopes “companies from both countries can solve issues of common concern through friendly consultation.”
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