Slumping Retail Sales in Beijing and Shanghai Challenge China’s Narrative on Tariff Resilience

Despite the poor performance, official data reported a 5.9 percent year-over-year growth for March, causing eyebrows to raise among many Chinese netizens.

An employee uses balloons to attract customers at a fashion retailer running a promotion sale at a shopping mall in Shenzhen, Guangdong Province, China, on Nov. 1, 2019. Andy Wong/AP

Retail sales in two of China’s wealthiest cities—Beijing and Shanghai—fell sharply in March, casting fresh doubt on the strength of China’s domestic consumer demand.

The weak performance stands in contrast to the narrative in China’s state media, which has emphasized that strong consumer demand will enable China to withstand the increase in U.S. tariffs.