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Retail sales in China is expected to grow 3.5% in 2019 toreach $5.29 trillion, much lower than a previous forecast of7.5% growth to $5.64 trillion.
The research firm had expected China to surpass the U.S. inretail sales this year, but based on the current growthprojections China will overtake the U.S. in 2021 by about $93billion, the report said.
"The U.S.-China trade turmoil is even more of a concern forChina now that domestic demand impacted one of the country'slargest sectors: auto," eMarketer forecasting director MonicaPeart said.
"But with two simultaneous market challenges, retail salesmay struggle to achieve the national growth target of 6% to 6.5%for the year."
The firm forecasts U.S. retail sales to grow 3% this yearamounting to $5.48 trillion.
President Donald Trump in early May imposed additionaltariffs of up to 25% on $200 billion of Chinese goods, promptingretaliation by Beijing. Trump earlier this month threatened moreduties on Chinese imports if no deal was reached with ChinesePresident Xi Jinping at a G20 summit, scheduled later this weekin Japan.
China has a 21.1% share of the world's retail market, whilethe U.S. has a 21.9% share, the report said.
(Reporting by Nivedita Balu in Bengaluru; Editing by ShaileshKuber) ((Nivedita.Balu@thomsonreuters.com; within U.S. +1 646 2238780; outside U.S. +91 80 6749 4822; Reuters Messaging:Nivedita.Balu.thomsonreuters.com@reuters.net))