China faces policy test as subsidy pullback hits auto, appliance sales

Fading retail indicators raise pressure for second-half stimulus, deepen export reliance

Weak consumer sentiment is weighing on Chinese sales of big-ticket items like cars and home appliances. (Nikkei montage/Source photos by Ken Kobayashi and Reuters)

SHANGHAI -- Sales of cars, air conditioners and TVs fell rapidly in China last month as the impact of government subsidies faded, raising pressure on policymakers to stimulate the economy.