By Andrew HarnikWalmart and Rite Aid announced on Monday that they would slash the number of store locations in China from a total of about 50,000 to around 30,000.
Rite Aid said in a statement that the decision would cut its global sales by roughly $6 billion and eliminate some 200 jobs at its stores in the country.
Walmart said that the reductions would “help us better serve our customers in the U.S., and help us better align with our long-term strategic plan.”
It is also reducing its global workforce in China, from more than 1.5 million to about 900,000, according to a company statement.
Rates for food are also being cut in China and India.
The country is home to more than two million Walmart and Target stores, as well as other major retailers such as Wal-Mart and Amazon.
In addition, the government has begun imposing a 30 percent tax on foreign retailers’ foreign earnings.