Chinese state TV criticises Wal-Mart's quality control

HONG KONG (REUTERS) - A state-owned Chinese TV station which has run a string of stories criticising foreign firms has accused US retailer Wal-Mart of circumventing its quality control process and fast-tracking some products with higher profit margins.

The report by China Central Television (CCTV) was based on an interview with an anonymous former Wal-Mart employee and cited more than 200 documents dating from 2006 that referenced a "special approval process" and mentioned alcohol suppliers that did not have production permits.

Wal-Mart, the world's No. 1 retailer, said it keeps a close watch over its supply chain and only uses its special approvals process in specific circumstances, such as when a supplier changes the size of a product or switches distribution agents.

"Our special approval process is used to accelerate listing items from suppliers we already do business with. The process requires three levels of management approval on an item by item, supplier by supplier basis. This ensures that we do not sell fake or inferior products nor we compromise the welfare or safety of our customers," Wal-Mart said in a statement.