China has summoned Walmart representatives to discuss reports of cost shifting onto Chinese consumers and manufacturers amid the U.S. trade dispute, Chinese state media reported on Wednesday.

The Ministry of Commerce, along with other officials, wanted to talk in Beijing about U.S. media reports that said Walmart was requiring its Chinese suppliers to drastically cut their prices, according to reputable sources.

The ministry’s move was a clear signal to Walmart, a social media channel close to Chinese state television reported.

The channel further reported that the company’s approach was inappropriate and disrupted fair competition.

Moreover, it suggested that Walmart’s behaviour was not conducive to the growth of the company’s business in the Chinese market.

It added that one potential consequence could be disruption to supply chains, which would harm the interests of companies and consumers on both sides.

The U.S. government led by President Donald Trump recently implemented 20 per cent tariffs on Chinese goods; experts believe that the surcharges could be passed on to consumers at the checkout.

By reducing the prices demanded from its Chinese suppliers, Walmart could be attempting to offset the impact of the tariffs. The retail chain also operates stores in China. 

(dpa/NAN)