China moves to shield physical stores against e-commerce

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.