This article only represents the author's own views.
An unusual turf war involving China’s leading duty-free store operator and one of its own subsidiaries is casting a spotlight on the sector’s struggles in a slowing economy, even as Beijing takes repeated steps to support the industry.
The story from this low-profile sector burst into public view this month when staff from heavyweight CTG Duty Free Corp. Ltd. (1880.HK, 601888.SH) blocked two workers from Sunrise Duty Free Shanghai Co. from entering the headquarters of Shanghai Airport Group, operator of the two major airports in China’s commercial capital. The Sunrise pair planned to submit bids to continue operating duty-free shops their company had managed for 26 years. CTG made the physical intervention after Sunrise moved ahead with its plan even after Sunrise’s own board, which is majority controlled by CTG, previously voted against making the bid.