Walmart deepens its presence in China

Walmart Inc said it is ramping up support for Chinese exporters to shore up their businesses amid the trade tensions between the United States and China.

The US retailer said it will help the exporters expand their businesses on its global e-commerce platform and introduce their products to its retail stores across China. 

Such a twin push by Walmart — facilitating global expansion for Chinese sellers via its e-commerce platform Walmart Marketplace, while easing their entry into Walmart China's local retail network — underscores the US retailer's pragmatic approach to deepening its presence in China, industry insiders said. 

Walmart Marketplace opened its fourth China office in Chengdu, Sichuan province, on Wednesday, its first in southwestern China. The move reflects its broader strategy to expand from coastal hubs to inland regions to better serve local exporters, the company said in a statement.

In addition, Walmart China rolled out a "green channel" -initiative on Thursday which is tailored for export-oriented enterprises, according to its official account on social media platform WeChat.

The program streamlines entry procedures and speeds up approvals, enabling qualified exporters to quickly bring their products into Walmart China's domestic retail ecosystem.

"These two moves signal Walmart's continued confidence in the resilience of the Chinese economy," said Jason Yu, general manager of CTR Market Research.

"Walmart is helping Chinese companies reach global markets and local consumers — this is a win-win that reflects their pragmatic and long-term view of China," Yu said, adding that the moves also reflect China's important role, as a global innovation hub and growth engine, for the US retailer.

This latest move by the US retail giant came amid mounting pressure from trade frictions between the two sides.

According to CBS News, Walmart and Target executives recently privately warned the US administration that escalating tariffs could disrupt supply chains and lead to empty shelves. The administration has imposed 145 percent tariffs on Chinese goods, alongside 10 percent tariffs on most other countries.

For Chinese suppliers, the impact has already been felt. Mu Longsheng, director of Jiangsu Huateng Personal Care Products Co Ltd, said that the company has long supplied Walmart stores in the US with oral care products, but it is now seeking to expand in China.

The company reached out to Walmart China on Friday and submitted its application. "Their support for Chinese exporters entering the domestic market sends a strong signal," Mu said.

Speaking of the impact of tariffs on prices in the US, Mu said that before the US started its "reciprocal tariff" strategy this year, a toothbrush priced at 1 yuan (13 US cents) in China would cost 1.07 yuan reaching US retailers. However, with the current tariff level of 145 percent, it costs around 2.5 yuan.

"The cost has more than doubled for US importers in this case," Mu said. "Not to mention the US consumers, who should never be held hostage by politics. But now, it turns out that ordinary people are the ones who end up paying the bill."

wangzhuoqiong@chinadaily.com.cn