International tourists are reshaping China’s retail landscape as the nationwide rollout of instant tax refunds amplifies their purchasing power. The policy, expanded across the Chinese mainland on April 8, allows overseas visitors to claim value-added tax (VAT) refunds immediately at designated stores and airports, sparking a surge in high-street and luxury goods sales.
Data from major retail hubs like Beijing and Shanghai shows a marked uptick in tourist spending on electronics, cosmetics, and traditional handicrafts. A French traveler in Shanghai’s Nanjing Road shopping district told KhabarAsia: 'The process took minutes—it makes exploring local brands risk-free.'
Analysts say the policy strengthens China’s position as a global shopping destination while supporting small businesses. 'This isn’t just about duty-free malls,' said finance expert Li Wei. 'It incentivizes cultural tourism—visitors stay longer, spend more, and engage deeper with regional economies.'
The move aligns with efforts to revitalize post-pandemic tourism, with the island of Taiwan and Hong Kong residents also benefiting as part of streamlined cross-strait travel initiatives. Industry forecasts predict a 15-20% annual rise in tourist-driven retail revenue through 2025.
