It took nearly 12 years to liberalize the FDI polices of China and opening door for foreign retail sectors inside China (Dutta, 2011). With the immediate opening of Tesco, Wal-Mart, Metro etc. which are the first one to enter and access the market. At that time, only 49% of sectors were initially permitted by Chinese government; rest of the fraction was liberalized on 2004. However, in the subsequent years, it had withdrawn many granted approvals given to the foreigners, due to the pressure it received from local retailers, farmers and civilians. This is another major hindrance to the cross border retailers apart from the competitiveness received by the same. Chinese are trickier in opening up the liberalization slowly to extending the backlog support for local retailers for adapting equally to compete with the foreigners.
The next barrier observed is competitiveness. The largest competitor in the supermarket segment is the Shanghai Bailian Group based in China (with), which possesses nearly 5809 stores in the year 2010 which has about 11% of the market share. Yet U.S Wal-Mart regardless of the information that the big-box retailer located out the shop nearly 15 years ago in the country possesses nearly 6% market share in China which plays the retail market in the US (CRIR, 2014). a Taiwan based company named RT-Mart International Limited with 6.3% market share till mid-2011 was the major retailer on the Chinese mainland. According to Kantar World panel, it drew more than one-fourth of households in the mainland market. A 4.9% market share was possessed by Carrefour Group during 2010; which is a French retail giant and the world’s second-largest retailer by returns. In the year 2011, by income Tesco Public limited company was world’s third-largest supermarket. In the second quarter of 2010 CR-Vanguard Group acquired its market share and it increased to 6.7% from 6.2% in 2011’s second quarter in a highly fragmented retail sector (CRIR, 2014).