The Chinese government is also applying pressure, warning earlier this month that demands for discounts could violate contracts and threaten trade relationships. Walmart has a strong retail presence in China, with sales rising 16% to $17 billion last year, that it doesn’t want to jeopardize. And China also has other cards to play against tariffs: Chinese Premier Li Qiang reportedly signed a State Council decree, effective Monday, to enforce its 2021 anti-foreign sanctions law, enabling retaliation against foreign entities through bans, asset freezes, and trade restrictions.
Who could benefit from a trade dropoff with China? First in line: India. Milan Vaishnav, director of the South Asia program at the Carnegie Endowment for International Peace, told NPR that “Prime Minister [Narendra] Modi's big bet is that as more and more companies are seeking to exit China … India is poised to play in a very big way.” Potential winners also include Vietnam and Indonesia: Toy manufacturer Bratz, maker of popular fashion dolls, announced it would relocate factories to the three countries last week.
