China has summoned Walmart executives for regulatory talks. The move follows concerns that Walmart is pressuring its Chinese suppliers to significantly lower prices, potentially shifting the financial burden of additional U.S. tariffs onto Chinese suppliers.

According to Yuyuantantian, a social media account affiliated with state broadcaster CCTV, officials from China’s Ministry of Commerce and other authorities met with Walmart representatives on March 11 to address reports that the retailer is demanding abrupt price cuts from its Chinese suppliers.

The talks also signal possible further action ahead of bilateral trade negotiations amid escalating economic tensions.