The country has optimized its home policy in order to better meet the needs of foreign tourists and stimulate consumption.
Two French students choose drones in a shop in Wuhan (Hubei), April 15, 2025.
“This trip to China was a real boon,” exclaims Keiko, a Japanese tourist who obtained an instant tax reimbursement at Shanghai International Finance Center. His experience reflects a new trend: foreign visitors, seduced by this ease of purchase, are now flocking in Chinese businesses.
On April 26, the Chinese Ministry of Commerce and five other government ministries and commissions published a joint circular aimed at optimizing the collection policy, reducing the threshold for the period of 500 yuan to 200 yuan, increasing the ceiling for cash reimbursements of 10,000 yuan to 20,000 yuan and encouraging commercial areas, tourist sites and hotels to multiply the reimbursement points tax.
Since 2015, China has implemented, in the insular province of Hainan, the tax reimbursement policy for foreign tourists – an international practice allowing tourists to recover VAT. “The reimbursement rate amounts to 11 % of the price including tax for the majority of items, which is equivalent to the total amount of VAT,” said Jia Rong’e, director of the Department of Tax Policy of the Ministry of Finance, during a briefing on April 27. “Only a few restricted products are excluded. »»
The new regulations allow foreign visitors and residents of Hong Kong, Macao and Taiwan staying on the continental part of China for less than 183 days to request a refund for purchases greater than 200 yuan made in the same day in the same store, provided that the goods remain unused. This new threshold of 200 yuan benefits frequent purchases such as tea, cultural memories and cosmetic products, while the doubling of the ceiling for cash reimbursements facilitates the acquisition of electronic and luxury products.
Foreign tourists are shopping at the Xiushui market in Beijing on April 20, 2025.
Improve the purchasing experience
The American beauty blogger @lulu posted on Xiaohongshu (Rednote), a popular Chinese application of lifestyle and electronic commerce: “I have the impression that China seems to pay more attention to American citizens than the United States themselves. It implements policies that make the lives of Americans easier. She clarified that as Imple, she does not even need a visa to visit China thanks to transit policy without a visa. “For 10 days, I can travel, shopping and obtaining instant tax reimbursements. »»
According to official data, in 2024, sales of period -eligible products increased by 120 % and the total amount of taxes reimbursed increased by 130 % compared to 2023. Inputing tourists spent $ 94.2 billion last year, an increase of 77.8 % compared to the previous year.
In Beijing, tax reimbursement requests since January jumped 210 % over a year, with corresponding sales up 150 % and reimbursed amounts, 170 %.
This policy redefines the landscapes of retail. The Beijing (Hongqiao market) pearl market, a jewelry center created in the 1970s, has been offering tax reimbursements since 2015. “We have been offering this service for years to strengthen our global competitiveness, attract foreign visitors and stimulate local economy,” said Zhou Guifang, Deputy Director of the Market.
My TAO, tax manager of the SKP luxury shopping center in Beijing, tells the Xinhua news agency that hundreds of shops now offer tax reimbursements on categories such as clothing, cosmetic products and watches.
Traditional Chinese brands also attract foreign tourists. “With the boom in tourism and the growing recognition of Chinese brands internationally, we see more requests for delegates, mainly for traditional Chinese drugs such as cordycepts (a kind of mushroom) and swallows nests,” said Zhang Rui, deputy director of Tongrentang, a pharmaceutical company with a history of more than 300 years, in the commercial and tourism district Dashilan in Beijing.
In designated stores, foreign tourists can instantly receive the tax reimbursement in RMB after a simple credit card pre -authorization procedure and the signing of an agreement. “This moves the airport reimbursement process to stores, offering immediate advantages to tourists and encouraging repeated purchases while saving time at the time of departure,” explains XIE WEN, director of the Department of Taxes and Services of the State Administration of Tax Affairs.
The city of Chengdu (Sichuan) launched this pilot service in 2023. In April 2024, 49 were already actively participated. This is the case of Chengdu IFS, a high -end shopping destination, about which the influencer @tobyinchina shared its experience on Xiaohongshu: “The Details service counter is easy to find. Just a credit card and a passport to immediately receive cash refund. It’s amazing! »»
The Changsha IFS, a pilot point in the Hunan province, now has 31 participating stores covering fashion, accessories and cultural products. The shopping center staff reports an improvement in the purchasing experience compared to that at the airport.
This convenience transforms consumption habits. In April, an American tourist was able to benefit from reimbursement for several of his purchases: a Huawei foldable phone, two jingdezhen porcelain sets and three Pu’ernan tea pancakes, thus saving nearly $ 500. According to her, these savings could cover a three -day trip to Xi’an.
“Instant tax reimbursements, entry and transit policies without visa, as well as mobile payments stimulate consumption and testify to the opening of China,” said Liu Huan, a professor specializing in tax and financial research at the Central University of Finance and the Economy, in Xinhua.
A shop offers instant preset in Shanghai, April 29, 2025
Beyond consumption
China has expanded the unilateral visa exemption to 38 countries, extended the time of transit without visa at 240 hours for 54 countries and facilitates the entry of foreigners into the territory. According to the National Immigration Administration, the number of foreign visitors increased by 96 % in 2024 and 40.2 % in annual shift since the implementation of the transit policy without a visa of 240 hours in December 2024, with 6.57 million admissions without visa.
Instant tax reimbursements benefit tourists while promoting Chinese products and culture worldwide. From the hashtag #chinatravel to the visit this year of the creator of the content of YouTube Ishowspeed, social networks contribute to developing the perception of Chinese products, now associated with a true cultural identity.
An unprecedented trend is emerging: foreign influencers come specially in China to make purchases they will sell in their country. This method of purchase on behalf of third parties that Chinese residents abroad practice under the name of Daigou (literally “purchase by proxy”) is reversed, which testifies to the growing attractiveness of Chinese products. Chinese Internet users joke by saying that foreign tourists only need Alipay, a Chinese digital portfolio, and empty luggage for an exceptional shopping experience. The stories of Americans flying to China for “Made in China” products have become trendy on social networks.
*Tao Ziihui is a journalist at Beijing Information.
