Analysis: The Puzzle of Beijing’s Faltering Consumer

Since the beginning of 2025, a strange divergence has appeared in China’s consumer economy. Retail sales growth in Beijing has not only lagged the national average but has also fallen significantly behind other top-tier cities like Shanghai, Guangzhou, and Shenzhen. This is a new phenomenon; macro-economic variables alone cannot explain why Beijing’s consumers suddenly pulled back. So what’s holding the capital back?