China orders Sam’s Club to tighten food-safety controls

China’s market regulator has ordered Walmart’s Sam’s Club to take strict measures to eliminate food-safety risks across its supply chain, after holding regulatory talks with Walmart China officials over problems found in the chain’s brick-and-mortar stores and online shops. The State Administration for Market Regulation said the company must comply with China’s food safety law and the rules governing chain food retailers and online food sellers.

The notice left out the exact violations that triggered the meeting, but the message was unmistakable. Beijing is telling a fast-growing foreign retailer that expansion in China now comes with tighter discipline on sourcing, handling and sales, especially in a business built on trust and premium positioning.

That warning lands at a sensitive moment for Sam’s Club. By the end of 2025, the warehouse chain had 63 stores in China, after opening 10 stores during the year. Its transaction volume rose by double digits, Sam’s Club China revenue reportedly exceeded 140 billion yuan in 2025, and paid members surpassed 10.7 million. At a 2025 Walmart investment conference, Zhu Xiaojing said eight Sam’s Club stores would break through the sales mark of US$500 million per store, underscoring how central China has become to Walmart’s international ambitions.

The regulatory pressure also comes against a backdrop of repeated food-safety complaints. Chinese and regional outlets have reported a series of incidents at Sam’s Club over the past year, including allegations that rats and maggots were found in products. Those reports have made the chain a visible test case for whether a global retailer can maintain consistent controls across physical stores and online channels in a market where regulators have become more assertive.

For Walmart, the issue goes beyond a single corrective action. China has been tightening oversight of consumer safety, and foreign brands that trade on quality are now expected to prove their standards at every step of the supply chain. Sam’s Club must now convince regulators that its rapid growth in Beijing, Shenzhen and other major cities has not outrun its internal controls. The broader signal to multinational retailers is clear: in China’s consumer market, scale will not protect a brand from scrutiny.