Walmart challenging Chinese regulators

Wal-Mart Stores, Inc. is, according to this story, fighting back against Chinese regulatory authorities after facing continuous investigations.

The world’s largest retailer has been forced to pay roughly $10 million over the last three years for violating Chinese food and safety standards. These fines have not only impacted the company’s profitability, they have also hurt its long-term growth prospects by driving traffic away from Walmart stores.

walmart.chinaIn January, it was alleged to have been selling donkey meat, and it was found later there was fox meat in the product under question. Since then, the retailer has worked to improve quality standards through increased testing and new inspection techniques. Over 600 products are now tested daily at Walmart’s distribution centers in China for any flaws. The company also plans to start DNA testing for its meat products.

Although Walmart has taken the initiative to rectify these problems, they say manufacturers need to be investigated by regulatory authorities as well.

Food safety has been one of the biggest issues in China, as thousands of Chinese have fallen ill after consuming unsafe products. However, the story says, Chinese regulators do not investigate or fine local manufacturers or supermarket chains with the same frequency they regulate and fine international retailers.