Economic Watch: Easier entry, simplified tax refunds draw foreign tourists to shop in China

BEIJING,汶川政府新闻网 Jan. 4 (Xinhua) -- Park Eun Jeong, a 46-year-old visitor from the Republic of Korea (ROK), wrapped up her recent trip to China by securing tax refunds for two purchases at an airport in Shanghai -- a peony-and-butterfly shawl and a hand-embroidered silk scarf -- in less than 15 minutes.

"The whole process was very smooth," Park said. "Quite a few people were waiting for manual refunds, so I chose a self-service machine instead."

She scanned her passport and shopping receipts, followed the on-screen prompts, and watched the system swiftly complete the verification. Within minutes, the refund was transferred directly to her WeChat Pay account.

Park is among a growing number of foreign tourists benefiting from China's policy push to improve the shopping experience. Fueled by the expansion of visa-free entry policies and the refinement of departure tax refund services, enthusiasm for both "China travel" and "China shopping" has continued to build.

During the just-concluded New Year holiday, ticket bookings for tourist attractions by inbound visitors jumped 110 percent year on year, according to Chinese travel platform Trip.com Group. Data from the National Immigration Administration showed that during this holiday, cross-border trips by foreign visitors grew by 29.8 percent from the 2025 figure to reach 828,000.

Beyond immersive experiences of the country's natural scenery and cultural appeal, shopping in China is increasingly becoming an integral part of overseas visitors' travel itineraries. The resulting surge in inbound consumption underscores China's growing openness and the appeal of its cities, injecting new momentum into economic growth.

SMOOTHER TRAVEL, EASIER SHOPPING

For Italian photographer Simona Maria Cannone, China's expanding visa-free access has made travel preparations notably simpler. The 30-day visa-free policy made the trip as simple as taking a domestic European flight, Cannone said.

Cannone and her husband recently spent a month in southwest China's Yunnan Province, traveling through Kunming, Dali and Honghe. Getting around in China proved equally convenient. "As Europeans, we are very accustomed to train travel, and Chinese high-speed trains have consistently impressed us with their efficiency and punctuality," she said.

Beyond easier travel, China has optimized its departure tax refund policies by lowering the minimum purchase threshold, expanding the network of eligible retailers, and promoting instant tax refunds that allow overseas visitors to receive refunds directly at retail outlets rather than waiting until departure at airports.

At Hisense Plaza in Qingdao, east China's Shandong Province, Kim Do Hoon from the ROK purchased a handbag at a Bottega Veneta store and received an immediate 2,070-yuan (about 294.5 U.S. dollars) tax refund. "It was much easier than I had imagined," Kim said.

According to Zhang Yu, a manager at Hisense Plaza, nearly 300 brands at the mall, mainly those for accessories, handbags and apparel, now offer instant tax refunds. Overseas visitors are also showing growing interest in Chinese brands and products, including Huawei smartphones and DJI drones.

National data show that in the first 11 months of 2025, the number of overseas travelers applying for departure tax refunds surged 285 percent year on year, while sales of tax-refunded goods and total refunds both rose 98.8 percent. By the end of November 2025, China had 12,252 designated departure tax refund stores nationwide, with more than 7,000 offering instant refunds upon purchase.

NEW GROWTH ENGINE

At a new Chinese-style clothing store along the historic streets of Xuhui District in east China's Shanghai, instant tax refunds upon purchase have been widely used by overseas visitors.

"Our store specializes in new Chinese-style clothing for both men and women," said Tian Ling, director of the Neo Chinese Style flagship store. "We opened in April 2025, and shortly afterward, local tax authorities in Xuhui District contacted us to introduce the instant tax refund policy. We signed up promptly," Tian said.

Located in an area known for its historic houses and streets, the shop has drawn a steady stream of foreign visitors. "Many of them have become our customers and have used the instant tax refund service here," Tian added.

Language barriers have not proven to be an obstacle. Tian said staff members use translation apps to communicate with overseas customers, while a designated tax official from local authorities is available online to provide real-time support.

According to the Communist Party of China Central Committee's recommendations for formulating the 15th Five-Year Plan (2026-2030), China will develop more cities into international consumption centers and expand inbound consumption in the coming years.

These efforts are expected to further upgrade domestic commerce, as well as cultural and tourism offerings, and to enhance cities' global visibility and influence, said Liu Xiangdong, a researcher at the China Center for International Economic Exchanges, adding that international experience shows that inbound consumption can also stimulate domestic consumption and investment.

Data from the Ministry of Commerce show that in 2024, spending by inbound travelers accounted for about 0.5 percent of China's GDP, compared with between 1 percent and 3 percent in other major economies worldwide, indicating significant room for China's growth.

To tap this potential, Liu suggested integrating duty-free shops and tax refund outlets with cultural and tourism resources to create "shopping plus tourism" experiences. He also proposed expanding downtown duty-free stores and developing multilingual duty-free shopping apps to improve convenience for foreign consumers.

Vice Commerce Minister Sheng Qiuping said China will steadily expand unilateral visa-free access, further optimize tax refund services, and advance the development of cities into international consumption centers.

"We will make it easier for consumers around the world to come to China, travel with greater comfort and enjoy better value when shopping, so they can experience a China that is more open, inclusive, diverse and innovative," Sheng said.