A customer checks out beverages at a supermarket in Binzhou, Shandong province, in February. CHU BAORUI/FOR CHINA DAILY

Global Times-At a regular press conference on Thursday, a spokesperson of the Ministry of Commerce of China responded to reports that "Walmart had been summoned for talks by China's Ministry of Commerce and other departments." The spokesperson stated that the relevant departments had inquired with Walmart about the situation and that Walmart had also provided an explanation. Earlier, multiple media outlets reported that Walmart demanded significant price cuts from some Chinese suppliers, allegedly attempting to pass on the burden of the new round of US tariffs on China to Chinese suppliers and consumers. The China Chamber of Commerce for Import and Export of Textiles also responded on Wednesday, stating that it had received complaints from its members that certain major US retailers were pressing Chinese suppliers to cut prices, and that it is verifying these claims and will take action to protect the legitimate interests of its members if the situation is confirmed.

Last week, Bloomberg reported that due to the US imposing a 10 percent tariff on Chinese goods twice, Walmart demanded that its Chinese suppliers - including producers of kitchenware and clothing - accordingly lower their prices. This unilateral and sudden demand for price cuts may violate the price clauses in commercial contracts, constituting a breach of contractual spirit. In the face of the US government's unilateral tariffs against China, Walmart is also a victim; a more rational approach, however, would have been to engage in fair, reasonable, and amicable negotiations with Chinese suppliers to overcome difficulties together, rather than resorting to temporary price cuts aimed at shifting the entire tariff burden onto them. As a purchaser, Walmart's actions have disrupted normal market order and may pose risks to the supply chain. The summoning of Walmart by the relevant Chinese authorities is intended both to safeguard the legal rights and interests of Chinese enterprises and to maintain a fair and just market environment.

Walmart is the world's largest retail enterprise, and China is one of its most important markets and supply chain components. Having operated in China for over 20 years, Walmart, including Sam's Club, has expanded its business to more than 100 cities with over 300 stores. In the past fiscal year, its sales growth in the Chinese market far exceeded that of the US market. More importantly, approximately 60 percent of the products in Walmart's global business are supplied by Chinese vendors. Without Chinese suppliers, more than half of Walmart's shelves would be empty. 

Walmart's experience in China reflects the objective reality of mutual benefit and win-win cooperation between China and the US in the supply chain. As a multinational corporation that has operated in China for many years, Walmart has fully enjoyed the benefits of China's economic growth and expanding consumer market. These achievements are not only the result of Walmart's sound management but also stem from China's world-class business environment, characterized by marketization, the rule of law, and internationalization. Reports indicate that Walmart will continue to increase its investment in China this year, with store expansion and local distribution cooperation projects underway. This demonstrates that its commitment to a sustained presence and long-term development in China has not changed. We are pleased to see multinational companies like Walmart succeed in China, but such success must be based on compliance with market rules and valuing partnerships. Since Walmart benefits from China's market environment, it has a responsibility to work with Chinese suppliers to cherish and maintain this environment. Attempting to shift unreasonable costs onto Chinese suppliers is not only unethical but also unlikely to withstand the test of the market.

Of course, the root of the Walmart issue lies in the US' misguided tariff policy. It is well known that Walmart's brand value is closely tied to its low-price strategy, making the company a direct victim of the US additional tariffs imposed on China. As the two largest economies in the world, China and the US have highly complementary industrial and supply chains. The trade war not only weakens the space for bilateral cooperation but also poses a threat to global economic stability. According to estimates by the Peterson Institute for International Economics, approximately 90 percent of the cost of tariffs levied on Chinese goods is borne by American consumers and businesses. Another recent poll showed that nearly 60 percent of US adults expect the tariffs will lead to higher prices. Neither Chinese suppliers nor American consumers should become victims of misguided tariff policies. If the US truly wants to alleviate the burden on American businesses and consumers, it should promptly eliminate the high tariffs that contradict economic principles. 

Walmart is a beneficiary of global free trade and should understand that maintaining the free trade system is not only a corporate social responsibility but also a fundamental guarantee for its own development. The two major economies, China and the US, play a crucial role in ensuring the stability and fairness of the international market and in promoting global economic recovery. In the face of the current challenges, both sides should adopt an open and cooperative attitude, strengthen communication and coordination, resolve differences through dialogue and consultation, avoid unilateralism and protectionist measures, enhance the resilience and flexibility of supply chains, and create a fairer, more transparent, and predictable business environment for enterprises in both countries. 

According to foreign media reports, Walmart representatives said at the Tuesday meeting that China's supply chains were key to its global success and that they would work with Chinese suppliers to find ways to avoid damaging the interests of the parties involved. Hopefully Walmart will demonstrate sincerity, follow through on its commitments, stop unilateral demands for price cuts, and work hand in hand with Chinese enterprises to tackle the headwinds of trade protectionism.