The company reportedly made business appear strong by making bulk sales to other retailers and tampering with inventory pricing. The markups accounted for 4 percent of the company's gross profits in 2010 while bulk sales were responsible for at least 1.6 billion yuan ($243 million) in revenue, according to Bloomberg.
"There is a general flexibility on ethics" Stanford Lin told Bloomberg. He conducted a 2010 internal review of Wal-Mart's business in China, "There was a huge desire to perform. In this market, they believe if they're hitting the numbers, then they're doing the right thing."
Wal-Mart has said that it will close 30 out of its almost 400 stores in China and shed 250 jobs in merchandising and marketing.