China’s Commerce Ministry held talks with Walmart over price cut request

China’s Ministry of Commerce held talks with Walmart on Tuesday regarding the retailer’s request of Chinese suppliers for price cuts of as much as 10% to offset new tariff costs. The discussions were reported by Yuyuantantian, a social media account affiliated with state broadcaster CCTV, which said: “Walmart’s unilateral demand on Chinese firms to cut prices could lead to disruptions of supply chains and hurt the interests of firms and consumers from both countries. If Walmart insists on doing so, then what would happen next would be beyond talks”. Shi Xiaoli, a professor of international trade law at the China University of Political Science and Law in Beijing, said Walmart’s request for price reductions from Chinese suppliers may violate commercial contracts, potentially disrupting the normal market transaction order.