The Walmart Corporation is certainly enjoying a lot of good PR. Recently their stock prices have begun to soar. On the other hand, it looks like China’s economy is not slowing down just yet. Indeed, President Obama and his economic team seem to be rolling out the red carpet for China and their Walmart subsidiary. They’re even saying that China needs this huge US company more than ever.
So, let’s talk about all this. I don’t know if there are any big deals in China owned by Walmart that we’re not already aware of. However, considering the fact that the Chinese government is very interested in having Walmart stores everywhere, I wouldn’t be surprised at all if they had one or two, perhaps three, in China. At least that would help reduce the trade deficit!
But just how worried should Americans be about this whole deal? And what does Walmart’s presence mean for the American worker? How will Walmart benefit from having lots of Wal-Marts around? Will it put them at a competitive advantage?
These are all questions that must be answered before China starts handing out free money. And if they do give away free money, who do you think would get it? That’s right, Wal-Mart, of course.
Now, there are some concerns here. China doesn’t exactly have a great labor force. And there’s no telling how long they’ll stay profitable before they start siphoning off those profits for themselves. I’d also say that the regulations on foreign-owned businesses in China are pretty weak as well. You could also argue that China has an excessive dependence on cheap labor.
But Walmart definitely has lots of advantages, especially when they’re expanding into different markets. It’s a very big step into the future for them, and they’re definitely onto something. They have proven that they can be successful, and they have done so without resorting to cheap labor. So, if China wants to save face, let’s see what they’ll do next.
I think for now it’s just a friendly conversation. And for a quick glance, I’d say it looks like China is going to join the Wal-Mart charge, at least for the time being. They don’t seem too worried about the whole “sweatshops” debate, and they certainly don’t seem too worried about selling bad products to American consumers.
China needs the U.S. based market, and they’ll do whatever they can to keep it. And even if they start dumping some stuff on the American consumer, at least for now, we’ll probably still buy it from Wal-Mart. And that’s a pretty sweet deal for Wal-Mart, isn’t it? The Chinese consumers absolutely love the store, and it boosts their sales levels.
That’s pretty much about it for now. China has a lot of internal problems, that it appears to be trying to resolve, but for now, I’d say it’s good news for Wal-Mart, and pretty much everyone else. In fact, I would expect this trend to continue as long as the economy remains healthy.