Beijing’s Latest Move in the US-China Trade War: Walmart Summoned over Tariff Hikes
The ongoing trade dispute between the world’s two largest economies, the United States and China, has taken another turn with Beijing summoning Walmart, the American multinational retail corporation, over reportedly asking Chinese suppliers to absorb the tariff hikes imposed by the Trump administration.
Background of the US-China Trade War
The US-China trade war began in 2018 when the United States imposed tariffs on Chinese imports, citing intellectual property theft and unfair trade practices. China retaliated with tariffs on American goods. Since then, both sides have imposed and increased tariffs on each other’s exports, causing tension and uncertainty in the global economy.
Walmart’s Role in the Trade War
According to reports, Walmart asked some of its Chinese suppliers to absorb the increased costs of tariffs, instead of passing them on to consumers in the form of higher prices. This move was aimed at protecting Walmart’s market share and maintaining its competitive edge. However, Beijing views this as an attempt to shift the financial burden of the trade war away from American companies and onto Chinese suppliers.
Impact on Walmart and Chinese Suppliers
The Chinese government has summoned Walmart’s top executive in China, Dan Feng, for a discussion over the issue. The Chinese Ministry of Commerce stated that the company’s actions were “seriously inconsistent with the WTO’s rules and the spirit of market economy.”
If Walmart is found to have violated Chinese regulations, it could face consequences such as fines, suspensions of business operations, or even expulsion from the Chinese market. For Chinese suppliers, absorbing the tariff hikes could lead to reduced profits, financial strain, and even bankruptcy.
Impact on Consumers and the Global Economy
The trade war between the US and China has already resulted in higher prices for consumers in both countries. With Walmart asking Chinese suppliers to absorb the tariff hikes, it’s unclear how long the retail giant can sustain this practice. If Walmart passes on the increased costs to consumers, they could face higher prices for goods. The trade war also has ripple effects on other industries and economies, potentially leading to job losses and reduced economic growth.
Conclusion
The trade spat between the US and China continues to escalate, with Beijing summoning Walmart over reportedly asking Chinese suppliers to absorb tariff hikes. The consequences of this move could be significant for Walmart, Chinese suppliers, and consumers in both countries. The global economy also stands to be affected, with potential job losses and reduced economic growth. Only time will tell how this situation unfolds and what the long-term implications will be.
- US-China trade war began in 2018 with tariffs on each other’s imports
- Walmart asked Chinese suppliers to absorb tariff hikes
- Beijing summoned Walmart’s top executive in China for discussion
- Consequences for Walmart and Chinese suppliers could include fines, suspensions, or expulsion from the Chinese market
- Higher prices for consumers and potential ripple effects on other industries and economies
