Beijing has announced plans to reinvigorate bricks-and-mortar operators facing intense price competition from e-commerce platforms, reports the South China Morning Post. This comes as retail sales growth cooled in May to the slowest pace since December 2022 and persistent weakness remains in big-ticket items.

The Ministry of Commerce, together with eight other relevant authorities, has released guidelines to accelerate the innovative development of the retail sector. The document charts out a path for differentiated competition between online and offline retailers, featuring plans to build a more rational pricing system over the next few years.

To shore up consumption growth and upgrade the sector, the guidelines–which run through 2030–stipulate that China will strive to transform physical retail spaces into destinations for shopping, immersive experiences and social entertainment.

Smartphone sales in China fell 13% ‌year-on-year during the month-long 618 shopping festival, reports Reuters. This comes as brands raised prices to offset higher memory costs.

Sales declined from May 26 to June 21, according to data from Counterpoint Research, with all major Chinese brands except Huawei posting double-digit drops as fewer promotions compared ​to last year weighed on demand. Honor sales dropped 33%, while Xiaomi’s fell 24%.

Higher memory prices ​amid a rapid build-out of AI infrastructure have pushed up handset costs this year, leaving ⁠brands with less room to offer steep discounts during the 618 festival, seen as a barometer for ​the country’s booming e-commerce sector.

Trip.com Group, China’s largest online travel agency, says it expects second-quarter revenue growth to be the slowest in more than three years and warns of a “significant fine” from an ongoing antitrust probe by the country’s top market regulator, reports the South China Morning Post.

The company reported on Thursday that first-quarter revenue rose 17% to RMB 16.2 billion ($2.4 billion), but forecast growth of 3-8% in the second quarter, the weakest since late 2022. Profit for the March quarter dropped almost 42% to RMB 2.5 billion, the lowest since late 2024.

“Rising energy prices and recent geopolitical tensions have led to higher airfares, tighter airline capacity, and disruptions on certain international routes, particularly long-haul travel, contributing to a moderation in air travel demand and changes in booking patterns,” chief financial officer Cindy Wang said on an earnings call on Thursday. The company announced in January by the State Administration for Market Regulation, “could directly result in a significant fine, other financial penalties [or] changes to the company’s business practices”, which “may have a material adverse effect on the company’s consolidated financial position, results of operations, or cash flows”.

Chinese authorities have summoned representatives of US-based membership-only retailer Sam’s Club for a “formal accountability interview” in response to “frequent food safety issues”, reports the South China Morning Post.

According to a notice from the State Administration for Market Regulation (SAMR), the Walmart-owned supermarket chain was urged to “prioritize food safety, strictly fulfil social corporate responsibilities, mitigate risks across the entire supply chain and safeguard public health” in its physical stores and online shops.

With its marketing emphasizing quality control and product selection, the warehouse retailer has in recent years become a status symbol among middle-class Chinese families. Quick expansion across mainland China gave it 63 stores in that market by the end of last year. But Sam’s Club has been hit by a series of food safety incidents across China over the past year, including reports of rats and maggots being found in its products.

Beijing’s market regulator has summoned major e-commerce platforms including Taobao, Tmall and JD.com over excessive competition during the ongoing “618” shopping festival, reports Caixin.

On Thursday, the Beijing Municipal Administration for Market Regulation held talks with Taobao, Tmall, JD.com, Pinduoduo, Douyin and Xiaohongshu, where the regulator showed a batch of systemic problems uncovered during its ongoing campaign against involution-style competition that included false advertising, non-compliant promotion rule making and failure to disclose vendor credentials.

During the “618” shopping festival, Taobao, Tmall, Pinduoduo and JD.com heavily marketed their RMB 10 billion ($1.5 billion) subsidy campaigns. However, none of the platforms specified the actual subsidy amounts or the funding ratios shared between the platforms and merchants, nor could they provide supporting evidence to the regulator.