Wal-Mart: productivity will ease Chinese costs

BEIJING Wal-Mart Stores vice chairman Mike Duke said that his company believes improved productivity will help alleviate some of the high costs in China, where it sources many of its products, according to reports.

Duke, according to reports, speaking in Beijing said that although inflation in China has risen to its highest levels in 11 years, manufacturing in China has gotten more sophisticated and could counter price pressuers. Wal-Mart buys $9 billion in directly sourced products from China.