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• The Wall Street Journal this morning reports that “a softer U.S. economy, rising gasoline prices and business miscues” have meant that Wal-Mart has “a growing amount of unsold goods in its stores, including about $2 billion worth of clothes and home-décor products.” Which means that the retailer is looking to cut back on some of its soft goods purchases – and that a number of its Chinese suppliers are “feeling the pinch” and are looking for markets to replace Wal-Mart.

That could have some impact on the Chinese economy: “About 20% of all Chinese exports go to the U.S., its biggest overseas market,” the Journal writes. “Wal-Mart imported $18 billion in goods from China in 2004.”
KC's View:
We loved the headline the Journal used for this story:

Wal-Mart Sneezes, China Catches Cold.