Chinese suppliers have long played an important role in helping Wal-Mart Stores deliver low-priced products to shoppers in the United States and other developed markets. But since 1996, when the giant retailer opened its first stores in the southern Chinese city of Shenzhen, Wal-Mart has had high hopes for selling in China as well as sourcing there. Today, the company, based in Bentonville, Arkansas, operates 260 outlets in China—ranging from its classic Supercenters to retail partnerships with local Chinese retailer Trust-Mart—and employs more than 90,000 associates. And as China CEO Ed Chan explains in this video interview, Wal-Mart sees enormous potential for further growth in the region. Todd Guild, a director in McKinsey’s Tokyo office, interviewed Chan at Wal-Mart China’s headquarters, in Shenzhen, in October 2009.

Watch the video, or read the transcript below.