The United States retail giant, Walmart is planning to invest as much as $1.2 billion in the Chinese logistics segment following the next ten years in order to increase efficiency and guarantee cheaper delivery systems.
Walmart riding the G20 “hype”
The commitment was made after Donald Trump’s visit to the G20 Osaka Summit and talk with president Xi Jinping.
According to Reuters, the talks may have rekindled some hope of forming a trade deal between the two behemoth economies in the future and benefiting everybody involved in the Pacific trade routes.
Walmart has been tinkering with the Chinese market for a while now, trying to find its place next to already existing retail and tech giants such as Alibaba and Tencent, but not quite hitting the efficiency predicted.
The company has even started a partnership with a Shanghai-based cryptocurrency platform called VeChain in order to integrate its services much better with the tech-literate Chinese customer base.
The announcement of the investment is sure to drive Walmart stock prices forward similarly to what the VeChain partnership did to the VET token.
Walmart wants a slice of the Chinese market
Walmart is so focused on acquiring the Chinese markets that the corporation has committed to upgrading and renovating as many as ten logistics centers in the country, mainly on the coastline to have better-supplying pipelines in the future.
Overall, the G20 talks seem to have engaged the global economy gears once again and are now nearing full throttle.
With a single meeting and an agreement between two people, some of the world’s most important currencies like the USD and CNY have started moving to a more consolidative stance.
Although a strong USD is not in president Trump’s checklist, it’s fine as long as the CNY moves with it.
Overall, the slowing global economy’s spark can once again be re-kindled with the talks after G20.