Recently, the "restoration of supply" notice from American retail giants has attracted widespread attention. According to a report by the Hong Kong *Ming Pao* on April 26, at the ongoing Canton Fair, several Chinese exporters revealed that American retail companies such as Walmart, Target, and The Home Depot have informed them to "resume sending" goods that were temporarily suspended due to the high tariffs imposed by the US on China, with the tariff costs being "borne by American buyers." Walmart and other enterprises have not yet confirmed this information. However, previous reports indicated that the CEOs of the three major American retail giants visited the White House and met with US President Donald Trump on the local time of the 21st to discuss the impact of tariff policies on these "import-dependent" enterprises. Recently, Walmart China also announced the opening of a green channel for qualified foreign trade enterprises. Both Chinese and American enterprises are consciously maintaining the normal operation of the supply chain, which once again demonstrates that tariff barriers cannot reverse the rigid demand in Sino-US economic and trade relations.
It is still unclear what specific scope and details Walmart and other retailers' notifications cover. Last month, Walmart had requested Chinese suppliers to "reduce prices" due to tariff pressure, and was subsequently called in for a talk by the Ministry of Commerce of China. Now, this plot twist carries significant meaning, though it is not surprising. Transnational enterprises like Walmart have undoubtedly benefited from economic globalization. However, as the US indiscriminately imposes tariffs, their commodity prices and supply chain systems will face severe tests. According to the current tariff rates, an American company importing a $100 Chinese product must pay at least $145 in tariffs to the US Customs and Border Protection. This cost will eliminate any profit margin the company might have, forcing them to sell at a loss or raise prices to a level unaffordable for consumers. American politicians can shout "decoupling," but ordinary people's daily needs won't wait for slogans to materialize.
It should be noted that some exporters told the *Ming Pao* that only part of the orders are currently being "restored for supply," while others have been canceled. Indeed, under such high tariffs, Walmart and other American retailers have only two choices: either cancel orders for Chinese products or pass the tariff costs onto American consumers. Walmart and other American retailers are running to the White House to continue cooperating with Chinese suppliers, even if they bear the tariffs themselves, because it is difficult for them to find replacement products for "Made in China" in the short term. High-quality and reasonably priced Chinese goods are crucial to their survival, operation, and profit margins. In essence, the US government's tariff measures ultimately hit its own citizens. And this chaos is just the beginning.
As the two largest economies in the world, Sino-US economic and trade cooperation brings enormous economic benefits to both sides. Imports from China support the development of the American manufacturing supply chain and enrich consumer choices, reducing living costs and increasing the actual purchasing power of Americans, especially middle- and low-income groups. Even with restrictions on imports, American domestic demand for "Made in China" products will not automatically disappear. According to a report released by the US-China Business Council in April 2024, China is a major market for American goods and services exports. In 2022, China was the largest export market for three US states, the top three export markets for 32 states, and the top five export markets for 43 states. That year, US exports to China created 931,000 jobs in the US. Sino-US economic and trade cooperation is the economics written by natural endowments and market demands, while so-called "reciprocal tariffs" is merely an expensive political show that will eventually return to its proper track.
Facts have proven that the anti-globalization approach of putting one's neighbors in peril is harmful and cannot last. Countries around the world cannot retreat into self-sufficiency behind closed doors, and attempting to "exclude China" from the global supply chain is wishful thinking. Economic globalization is an objective requirement of productivity development, an inevitable result of technological progress, and the only way for human society to advance. It is an irreversible trend of the times. Walmart's "restoration of supply" notice deserves serious reflection in Washington. We hope the US side can learn lessons from this event and promptly correct its erroneous tariff policies, returning to the correct path of dialogue with China based on equality, respect, and mutual benefit.
Source: @Global Times
Original article: https://www.toutiao.com/article/7498032373960049162/
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