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'China shopping' boom spurred by favorable policies helps drive growth: China Daily editorial

chinadaily.com.cn | Updated: 2025-08-07 20:13
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Confucius said: "Isn't it a pleasure to have friends come from afar?" That is certainly a sentiment the Chinese government agrees with. To boost inbound travel, the government has been continually easing and optimizing the visa policy to make it easier for foreigners to visit China.

As a result, the number of countries covered by the country's visa-free transit policy has so far expanded to 55, the number of entry ports has increased to 60, and the length of transit stay in China has been extended to 240 hours.

That has greatly facilitated foreign nationals' visits to the country, either for tourism or for doing business.

The implementation of the visa-free policy has proved to be a game-changer for China's tourism industry, which saw 20.1 million foreign travelers enter the country visa-free last year, surging by 112.3 percent from the previous year, according to the National Immigration Administration. The momentum continued in the first quarter of this year, with the number of foreign visitors to China increasing by 33.4 percent year-on-year.

As foreign visitors experience China's rich cultural heritage, diverse landscapes and vibrant cities, they are also lured by the competitive prices, high-quality goods, and diverse shopping options available in the country, which make them indulge in shopping sprees for a wide range of items ranging from traditional Chinese clothing to high-tech products such as smart wearables and drones.

"Be sure to bring an empty suitcase" has become the tongue-in-cheek travel advice on overseas social media platforms for those planning China trips.

The rise of the tourist shopping trend has been facilitated by a slew of supportive policies the government has rolled out, most notably reform of the departure tax refund policy. The State Taxation Administration announced in April a shift from a refund-upon-departure model to a refund-upon-purchase model, enabling foreign visitors to instantly claim tax rebates at tax-free stores across the country.

Moreover, the minimum purchase threshold for tax refunds has been reduced from 500 yuan ($69.6) to 200 yuan, and the cash refund cap doubled from 10,000 yuan to 20,000 yuan. All this underscores the government's resolve to facilitate inbound consumption and make shopping in China a memorable experience for foreigners.

The "China shopping" boom has had a profound impact on domestic consumption, driving robust growth in retail sales and stimulating demand for a wide range of products and services. The increase in foreign spending has not only benefited retailers and businesses, but has also created a multiplier effect for the broader economy by creating more job opportunities and boosting investment in tourism-related industries. This has fueled economic growth in regions that rely on tourism and consumer spending.

Since China's inbound consumption currently accounts for only 0.5 percent of its GDP, compared with 1 to 3 percent in other major countries, there is still significant potential for growth as far as foreign tourists' spending in China is concerned.

Amid rising global economic uncertainty, China's continuous drive to attract foreign visitors, as well as businesses, reflects its determination to push ahead with high-standard opening-up. The country has become a magnet for global brands seeking to tap into its lucrative domestic market, as international retailers and luxury brands continue setting up flagship stores and boutique outlets in Chinese cities, capitalizing on the growing demand from consumers.

By attracting foreign visitors, stimulating demand for goods and services, and fostering more business opportunities, China has leveraged its visa-free policy to drive prosperity and showcase its vibrant culture and dynamic economy to the world. It is also part of the government's efforts to boost spending and expand domestic demand.

That the country's retail sales of consumer goods — a major indicator of consumption strength — increased by 4.6 percent year-on-year to reach 12.47 trillion yuan in the first quarter indicates the measures adopted so far are having the desired effect.

As the country keeps opening its doors to visitors and business people from around the globe, the "China shopping" trend reflects the openness and resilience of an economy that continues to serve as a major engine of global growth.

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