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Walmart announced that the company is shifting its focus to its own operations in China.
Reuters reported that Walmart is selling its entire $3.7 billion stake in JD.com, ending an eight-year investment in the Chinese e-commerce company.
According to the report, the US retailer is focusing on its own operations in China, citing strong growth at Walmart China and Sam’s Club.
The sale comes amid intense competition in China’s e-commerce market, where companies such as JD.com and Alibaba are offering deep discounts that have led to a decline in profit margins.
Walmart said the decision will allow the company to focus on its core business in China while maintaining its relationship with JD.com, which will continue to sell Walmart products.
Walmart first invested in JD.com in 2016 by trading its Chinese online grocery store Yihaodian for a 5% stake in the company, later increasing its stake to over 10%. However, JD.com’s stock has fallen about 70% since its early 2021 peak as growth slowed following the pandemic.
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