Walmart Store Sr. VP Speaks on Business in China
Andrew Tsui is a Senior Vice President of Walmart . Recently he spoke at the Committee of 100 on Walmart’s opportunities in China.
In keeping with its corporate mantra, Tsui echoed it is Walmart’s intention to provide the best value for its customers…even in China or especially in China.
When asked if he thought the Chinese government would allow further revaluation of the RMB, Tsui responded, "Any small change in the value of the RMB should be considered a huge acquiesence by the Chinese government."
He went on to say, "There is not likely to be any further appreciation of the RMB in the future." There’s a lot of people who don’t want to hear that, I am sure.
When asked what Walmart would do if suddenly the price of the goods it receives from China suddenly went up, Tsui responded very matter of factly – "Walmart sources from 65 countries. Higher prices would make things difficult but not impossible. 95% of Walmart’s suppliers have contingency plans."
The RMB isn’t likely to be revalued in Tsui’s opinion but even it does happen, Walmart appears ready.
What would China do if it lost it’s fifth largest customer?
That is something the government must consider when it thinks about revaluing the yuan.
What do you think?
Leave a comment!