Foreign Ministry Spokesperson Mao Ning Photo: Ministry of Foreign Affairs

 
It is MKsportsreported that China's Ministry of Commerce and other departments summoned Walmart on Tuesday for reportedly requiring some of its Chinese suppliers to slash prices significantly in an attempt to shift the burden of the US tariffs on China to Chinese suppliers and consumers. 

On a regular press briefing, a foreign media reporter asked Foreign Ministry spokesperson to confirm the report, and if true, can she provide more details. Mao Ning a Foreign Ministry spokesperson said "on this issue, I refer you to relevant Chinese authorities," without providing further details.

MOFCOM and other departments summoned Walmart on Tuesday, Yuyuantantian, a media affiliated with China Media Group, reported on Wednesday.

Walmart has asked some Chinese suppliers for major price cuts, with the US retail giant's efforts to shift the burden of US' tariffs facing strong push back from firms in the Asian nation, Bloomberg reported on Thursday.

Yuyuantantian noted that the first message conveyed by the talks is that Walmart's unilateral demand for Chinese companies to cut prices could disrupt supply chains, harming both Chinese and US businesses as well as American consumers. Currently, about 60 percent of Walmart's globally sourced products come from China.

The second message is that the US' unilateral tariff hikes hurt both Chinese and American businesses, and companies from both countries should work together to navigate these challenges. China has been a key driver of Walmart's global growth over the past year. In the last fiscal year, Walmart's same-store sales in the Chinese market grew by 12.5 percent, 13.8 percent, 15 percent, and 23.1 percent year-on-year across the four quarters - far outpacing its growth in the US market, the report said.

The China Chamber of Commerce for Import and Export of Textiles (CCCT) has also urged major US retailers to address international trade issues fairly and reasonably.

CCCT has received reports from some member companies that large US retailers are asking Chinese suppliers to lower prices. The chamber is currently verifying the situation. If confirmed, it will take proactive measures to safeguard the legitimate rights and interests of its members.

The current challenges in international trade stem from the US government's unilateral tariff hikes, which have harmed businesses in both China and the US. The chamber hopes that companies from both countries can resolve shared concerns through friendly negotiations based on equality and mutual benefit, working together to navigate current difficulties and avoiding unilateral actions that leverage market dominance to disrupt supply chain stability, CCCT said.

Global Times