Thursday, October 13, 2011

Political motives seen in Wal-Mart's China trouble

(AP) ? Wal-Mart is getting another public bludgeoning in China as popular anger over food safety and political infighting make the retail giant a convenient target.

Authorities in the city of Chongqing have arrested two employees, closed down 13 Wal-Mart stores for two weeks and fined the company 2.7 million yuan ($421,000).

Analysts say the penalties seem excessive for the violation: passing off regular pork as higher-priced organic meat.

They said the outsize reaction is probably linked to a bid for power by the city's charismatic communist party secretary and concern that public anger over food safety problems could boil over.

Wal-Mart said it is cooperating with authorities but declined further comment.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2011-10-13-AS-China-Wal-Mart/id-032b5d58311b46059264b58d4e506af9

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