China against Wal Mart

Discussion in 'China' started by A.V., Oct 14, 2011.

  1. A.V.

    A.V. New Member

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    BEIJING: A city government in China has ordered the closure of 13 Wal-Mart stores and arrested two of its employees on the charge of passing off ordinary pork as high-priced pig meat. Wal-Mart, which runs 3,000 stores in China's 120 cities, has also been fined $421,000 by the government of Chongqing in southwest China.

    This is the biggest action against foreign owned retail stories, which have been given lesser punishments for other violations in the past.Wal-Mart and Carrefour were each fined $421,000 earlier this year for overcharging on items sold by them.

    Some western lawyers dubbed it as excessive punishment for a relative smaller violation. But the state-run China Industry and Commerce News said the action was part of a food safety campaign launched by Chongqing, where local authorities are taking a "zero tolerance" approach toward violators.

    Chongqing is largely run by Bo Xilai, the Communist Party secretary who is among the provincial leaders seeking a top slot at the central party head quarters at the next party Congress in 2013. He has made a name for himself by cracking down on criminal gangs, prostitution and other organized crime.

    The city led the way in cracking down on price hiking during the 20-month run on pork prices between 2006 and 2008. Investigations resulted in a Chongqing court giving a suspended death sentence to a pork mogul known as the 'butcher of Chongqing.' The pork trader, Wang Tianlun, was accused of using violence and threats and violence to corner 40% of the city's pork market. He was also accused of forcing buyers to purchase water-injected meat.

    Wal-Mart staff arrested, 13 stores closed in China - The Times of India
     
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  3. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    looks like the beginning of a trade war; with US corporations rushing to China they have more to lose then the Chinese, who can wake up tommorow and nationalize everything USA owns in China. It has happened before (venezuela recently all US oil assets).
     
  4. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    If US goes ahead with bill to appreciate Yuan, it might ring bell of another trade war. But I don't think US wants that or can afford trade war at least at this juncture.

    Open trade war is the only thing missing between US of 2011 & that of 1930.
     
    Last edited: Oct 14, 2011
  5. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Obama does not have the guts to do it, if he backed down against Haqqani network then China dosen't have anything to worry about. Obama has turned USA into a second rate power.
     
  6. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    For every 10% appreciation in yuan, chinese GDP will come down by 0.6%. PRC will never in its healthy conscious approve drastic increase in yuan's value.

    I'm afraid US can't do much here. WTO will not just go ahead & execute schumer plan. US corporations are going to feel heat in china for significant time to come.
     
    Last edited: Oct 14, 2011
  7. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    this plan is nothing more than a re election stunt by obama. Obama has doubled unemployment to keep chinese happy, 10% under bush is 20% under obama.
     
  8. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    If obama hopes to secure corporate funding for another term, he'll have to press WTO with these bill allowing favorable atmosphere for US companies in China. Moreover he has not taken care of reducing imports from low cost manufacturing countries which is a big challenge itself.

    US companies will not digest such treatment within china.
     
  9. no smoking

    no smoking Senior Member Senior Member

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    Looks like the author of this article has zero understanding of chinese commercial market.

    By fining $421000, which is around 2.5 million RMB, I wonder if CEO of Wal mart in China would feel anything about it. That is a very laughable amount.
     
  10. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    What's laughable is fining a company for raising prices when they have to pay more for their supply. CCP expects them to sell shit at a loss?
     
  11. asianobserve

    asianobserve Elite Member Elite Member

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    I hope that a full blown trade war erupts between them. Those American businesses should be forced out from China and into the waiting arms of SEA and India! :thumb:
     
  12. amoy

    amoy Senior Member Senior Member

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    Hey guys, put aside 'trade war' prospect for a moment pls. let's see u buy an item with a price tag $6, but in the end , u're charged $10 what would u feel? It was Carrefour, now Walmart
    No doubt it'll give more breathing space to competitors e.g. Metro or Tesco or indigenous retailers if they're really "forced" out. Even a medium city like mine oswarms with 1 Metro, 3 Carrefour, 5(?) Walmart +Sam's Club, 1 Tesco needless to mention countless lesser convenient stores. Closures seem reasonable before they have to initiate cut-throat pricing wars :lol: Recall Carrefour (or Walmart) had to quit S. Korea as they couldn't compete with local Lotte
     
    Last edited: Oct 14, 2011
  13. asianobserve

    asianobserve Elite Member Elite Member

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    Price control? Or is they're selling it at $10 because of inflation..? Either way China is in trouble.
     
  14. amoy

    amoy Senior Member Senior Member

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    Nah, pls refer back to the context. ordinary pork as high-priced pig meat
     
  15. niceguy2011

    niceguy2011 Tihar Jail Banned

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    American withdraw again ( they delay to vote for economic war with China or not ).
    They have no balls. let the game begin,plz!
     

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