Wal-Mart executives resign in latest set-back for U.S. retailer in China

Wal-Mart said Monday it was replacing the head of its operations in China, the latest set-back in the country for the giant U.S. retailer after employees were arrested and detained last week in the western city of Chongqing over a labeling scandal.

The company said in a statement posted on its website that Ed Chan, its CEO in China since 2007, was leaving the company for personal reasons. Clara Wong, a senior executive for human resources was also stepping down, the statement said.

Though Wal-Mart did not link the personnel moves to the controversy in Chongqing, the company continues to deal with fallout over charges it sold about 140,000 pounds of pork the past two years that was mislabeled a more expensive organic variety. The added cost to consumers amounted to about $115,000, according to the city government’s website.