China has developed a reputation for being willing to invest in companies that others are afraid of. Whether it’s in the form of equity investments, loans, or business partnerships, there are few international businesses that have not been touched by Chinese money. The country has bought shares of other publicly listed companies and even made sizeable private equity deals. In some cases, it is not just China but also its citizens who have invested in these businesses. Are you aware if China owns Walmart? Let’s find out.
Does China Own Walmart?
In the past, Walmart was a very well-known retailer. Its success was largely due to its low prices and its wide variety of merchandise. However, recently Walmart has been in the news for a different reason. It has been accused of being a “slave” company to China. The Chinese government owns 100% of the company and is making it take part in reducing its labor force by 10% and raising the salaries by 15%. This is not something that Walmart wants to do; they are just forced into this.
Walmart’s Chinese Partners
- Walmart was founded by Sam Walton in 1962. It began as a single store in Arkansas. Today, it has over 6,000 locations in the US and over 13,000 worldwide. It is the largest retailer of groceries in the world and also sells other products such as clothes, electronics, and computers. In 2011, Walmart’s total sales were $469 billion.
- JB Hunt Transport Services is a transportation company that provides trucking services to Walmart stores throughout the country.
- China National Chemical Corporation (ChemChina) is a state-owned chemical company that owns 67% of Syngenta AG, which makes pesticides and herbicides for farmers around the world.
- Ingram Micro is a public company that deals in technology and services. It has over 300,000 employees worldwide.
- Baidu, a Chinese Internet search company, owns 15% of Google’s parent company Alphabet Inc., which owns about 35% of the search engine market share in China.
- Disney is owned by Hong Kong-based conglomerate Wanda Group, which also owns AMC Theatres and Legendary Entertainment (a major movie studio).
- Berkshire Hathaway has $360 billion in assets under management and invests in companies through its investment firm, including Apple, Coca-Cola, and Wells Fargo Bank.
- General Motors was founded by William Durant in 1908 as Buick Motor Company to make carriages for the wealthy elite of Detroit’s upper classes. It started out as an auto manufacturer but eventually sold off its car division to focus on its trucks division which it still maintains today and recently announced plans to close 17 plants globally due to poor sales due-wide. In 2011, its sales were $19 billion.
- Yihaodian/Yihaodian Holdings Limited is a Chinese company that owns over 60% of the US-based furniture retailer, Ashley Furniture Industries.
- Nike Inc is an American designer, manufacturer, retailer, and distributor of athletic shoes based in Beaverton, Oregon in the state of Oregon, United States. It is one of the largest sports companies in the world by revenue with headquarters located in Beaverton.
China’s Stake In Other Retailers
1. Wal-Mart Stores
Walmart is the largest retailer in the world. It has over 11,000 stores in the US and plans to build many more. It has a large number of stores in China as well. In 2009, Walmart made a deal with a Chinese company to build five more stores. Those five stores were not only located in China but also had Chinese partners.
2. Costco Wholesale Corporation
Costco is currently the second-largest retailer in the US and one of the largest worldwide. It has over 460 warehouses around the world selling food, clothing, electronics, and other merchandise at very low prices. Costco is also involved in real estate development in China by renting warehouse space to companies that sell products made by Costco members; this helps Costco earn money while helping its members save money on their purchases.
3. Sears Holdings Corporation
Sears is a retail chain that has many stores in the US, Canada, Puerto Rico and several other countries as well. It had a very successful IPO in 2004 and it is considered to be one of the most valuable department store companies in the world. The company has stores in China as well. In 2009, Sears opened two stores in China with Chinese partners.
4. Kmart Corporation
Kmart is one of the oldest retailers in the US and it was once a very successful company until it started to decline to start around 2000. In 2009, Kmart opened three new stores with Chinese partners in Beijing, Shanghai, and Zhengzhou respectively. It also created a partnership with an e-commerce site called Alibaba Group that allowed Kmart to sell products from Alibaba on its website without having to pay any fees for doing so. This was an attempt by Kmart to compete with Walmart’s online sales policy which allows customers ers.
3. Sears Holdings Corporation
Sears Holdings Corporation, formerly known as Sears, Roebuck, and Co., is the largest retailer in the US in terms of revenue. It was founded in 1886 by Richard W. Sears and Alvah C. Roebuck and has since expanded to over 2,000 stores worldwide. In China, it has a large presence as well with over 1,000 stores and 100 warehouses across China. It has also partnered with Chinese companies to open more stores in China as well as to develop new store locations.
Why Is China Investing So Much In Retail?
- China is a huge market.
- China is a growing economy.
- China wants to sell its products in the US, but it cannot do this from a foreign-owned company.
- It would be difficult for Walmart to make the changes that China wants them to make, so China is forcing them to do so by owning 100% of the company and making them follow its rules.
- The Chinese government will be able to control how Walmart operates, which means that they will distribute the wealth more evenly by controlling how much money Walmart makes for all the products it sells (and Walmart does not want this).
- The Chinese government will be able to take over all of Walmart’s operations in China if they want, which means that they can make changes without having to go through American shareholders or workers at all! and they will be able to keep it in China if they want.
- They will be able to control the number of jobs that Walmart creates in China, which means that they can control the number of people who can get jobs and the amount of money that Walmart pays them.
Final Words
China is the world’s second-largest economy. It is also the world’s single largest trader with the US. As a result, owning businesses in other countries is a good way for China to protect its own economy, as well as a way to force other countries to play by China’s rules. While many retailers are happy to bring in Chinese money, others see it as a threat to their business. China’s growing middle class is spending more money on consumer goods, particularly imported goods from brands like Apple and Nike. It is also investing in them, particularly in the retail sector.
