Will Walmart “Made in America” Movement Hurt China?Submitted by meekandmild on Mon, 08/26/2013 - 09:51
Wal-Mart Stores Inc. (WMT) recently held what it called its "Walmart U.S. Manufacturing Summit." One of the purposes of the meeting was to promote new initiatives to build more of its products in America, thereby helping gross domestic product and employment. On paper this should hurt the fortunes of Walmart's suppliers in China and probably Mexico. Actually these companies have little to fret about. The Walmart plan to help the U.S. economy barely qualifies as a small step.
Walmart’s commitment to buy an additional $50 billion in U.S.-made products over the next 10 years and featured announcements from suppliers that, combined, are expected to infuse more than $70 million into factory growth and create more than 1,000 domestic jobs.
Wal-Mart said as recently as 2008 that it directly exported about $9 billion a year out of China, and third-party suppliers shipped another $9 billion, although it no longer provides that information on its website.
Taken as a whole, both the summit and its claims are bogus. That means Walmart's overseas suppliers have nothing to fear. The claims from the summit make the gathering barely worth having: