The Ministry of Commerce and other relevant authorities have met with Walmart Inc to discuss the US retailer's recent plea for price cuts from Chinese suppliers, a move which underscores growing anxiety by US corporations over Washington's standoff with Beijing over trade.

The parties met on Tuesday after Walmart contacted some of its Chinese suppliers to ask for significant price reductions in a bid to offset the impact of US tariff hikes that President Donald Trump's new administration has imposed on Chinese goods since taking office in January.

To cushion the impact on its business, the retailer wanted suppliers to cut some of their prices by up to 10 percent per each round of additional tariffs that the US government imposed on Chinese goods.

According to Bloomberg News, negotiations were being held on a case-by-case basis, with suppliers being asked to offer varying levels of discounts. However, only a few had so far agreed as many Chinese manufacturers already operated on slim profit margins due to Walmart's long-standing strategy of leveraging its purchasing power to squeeze suppliers to maintain its low-price market position.

The Beijing-based China Chamber of Commerce for Import and Export of Textiles said in a statement it will take proactive measures to safeguard the interests of its member companies.

"The majority of Chinese suppliers to Walmart operate on very thin margins," said Jason Yu, general manager of CTR Market Research.

Walmart China responded to queries from China Daily, saying: "Walmart will continue to maintain close cooperation with suppliers and spare no effort to optimize prices for our customers. Meanwhile, we call on all parties to actively seek common ground and work together to contribute to sustainable economic growth."

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 potentially cause difficulties for supply agreements.

This could pose a risk of supply chain disruption, harming both Chinese and US businesses as well as US consumers, said Shi.

The retailer's global sourcing strategy, which is outlined on its website, indicates that a large portion of the products it sells in key markets are locally produced.

Despite rising costs, Chinese products remain competitive in terms of cost performance, Yu said.

"Even with a 10 percent price increase, Chinese products are still highly cost-efficient."

Boasting a well-established and resilient supply chain, China remains a difficult producer for other countries to substitute, he added.

While sourcing from nations like Vietnam and Indonesia is increasing, Yu said Chinese companies needed to ramp up research and development efforts, boost technological know-how and add value to their products in order to maintain their crucial role in the global supply chain.

"Only then can they truly achieve differentiated competitive advantages."

Walmart has been ramping up its international presence, helping the retailer to report a 5.1 percent increase in fiscal 2025 total revenue to $681 billion from the prior year.

Meanwhile, according to a recent post from Hangzhou Cross-Border E-commerce Comprehensive Pilot Area, Walmart has invested in expanding its cross-border e-commerce platform and is cooperating with more Chinese sellers.

According to the post, Walmart Marketplace — Walmart's e-commerce platform that operates similarly to Amazon and Temu — will further expand local presence in China.

The company had established offices in 11 cities nationwide, including Shenzhen, Guangdong province; Shanghai; and Hangzhou, Zhejiang province, said the note.

The new offices will offer support in product selection, operational guidance, and both online and offline training, helping international sellers grow their businesses on the Walmart platform, it said.

Walmart unveiled its 2025 new seller incentive program, offering up to $75,000 in incentives. The program aims to attract new sellers, with benefits such as preferential logistics services.

One example of Walmart's international expansion is Zhejiang Hengjian Home Co Ltd, a furniture manufacturer that joined Walmart Marketplace in 2023. After just a year and a half, the company's business grew by over 40 times.

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