We show evidence of how political geography directly shapes real economic outcomes, by studying the spatial impact on Beijing’s restaurant sector of China’s 2012 anti-corruption campaign, which placed strict limits on lavish spending by public officials. Restaurants located closer to government offices experienced a relative decline in consumer demand. The post-campaign distribution of establishments was less spatially concentrated around government offices and had a smaller presence of high-end restaurants than before the campaign. Our results underscore the role of political geography as a potent, spatially concentrated driver of demand, and its influence on the configuration of economic activities.