Business

China Walmart Store Closures Linked to Trade Tensions
By wchung | 07 Jun, 2026

The resignation of Walmart China’s president and the shutdown of 12 stores in Chongqing are seen as signs of rising trade tensions between the world’s two largest economies.

Ed Chan resigned as head of Walmart’s China subsidiary after Chongqing Municipality authorities ordered the temporary closure of all 12 Walmart stores located within its borders on allegations that the chain had been mislabeling regular pork as organic for the past two years. Walmart was also hit with a 2.7 million yuan fine ($421,000) for mislabeling an estimated 63,547 kilograms (155,000 pounds) of pork. Chongqing police also detained 37 employees for questioning.

Chan’s departure was seen as particularly surprise because Walmart expanded from 70 to 353 in China since he took over in 2007.

Some suspect Chan has become a sacrificial lamb in an incipient trade war between the world’s two largest economies. Walmart was hit by “the heaviest punishment in history” by Bo Xilai, the city’s ambitious party chief. The punishment came immediately after the U.S. Senate passed a bill to pressure China into speeding up the appreciation of the yuan, precipitating speculation that Bo was playing to Communist Party bosses.

While the bill is unlikely to be signed into law, it is seen by China’s leadership as an effort at intimidation at the risk of precipitating a trade war. The punishment was meted out to Walmart — a global symbol of American consumerism — just as the Communist Party’s powerful Central Committee began four days of meetings whose agenda included secretive deliberations on whether to name Bo as one of nine elevated to the Politburo Standing Committee next fall. The slap at Walmart might have been used by Bo to show that he will take an aggressive stance against the U.S. in future dealings — a position likely to be favored by the majority of China’s current leadership. This is especially true because this year China has begun adjusting its economy to boost domestic consumption to 55% of economic output in an effort to lessen dependence on slowing export growth.

Walmart opened its first China store in Shenzhen in 1996. As of Oct. 1, the world’s largest retailer operates 353 outlets in 130 cities in mainland China staffed by 100,000 employees.

Chan’s departure comes on the heels of the resignations of Walmart China’s chief operating officer, chief financial officer and its vice president of operations in May and June. Chan will be succeeded by Walmart Asia president Scott Price.