China's Departure Tax Refund Sales Nearly Doubled in 2025 as Six Ministries Launch 2.0 Policy in May 2026

President Xi Jinping has stressed that "market resources are China's enormous advantage, and we must fully utilize and leverage this advantage, and continuously consolidate and strengthen it." In recent years, China has rolled out measures including unilateral visa-free expansion, departure tax refunds, payment facilitation and service improvements, steadily increasing the openness of its consumer market. In 2025, nationwide departure tax refund sales nearly doubled year on year. In the same year, the five international consumption center cities of Shanghai, Beijing, Guangzhou, Tianjin and Chongqing accounted for one-third of the country's inbound foreign arrivals, one-half of its consumer goods imports and two-thirds of its departure tax refund sales.

In May 2026, six departments including the Ministry of Commerce, the Ministry of Finance, the State Taxation Administration and the General Administration of Customs jointly introduced the departure tax refund 2.0 policy. Inbound consumption involves multiple links such as visas, tax refunds, payments and services, and is tied to a wide range of business sectors. In 2025, inbound consumption by overseas visitors accounted for about 0.67% of China's GDP, while the share in major countries worldwide stood at 1% to 3%. Compared with major consumption center cities in the United States and Europe, China's consumption center cities see shorter stays by inbound tourists, a lower share of international tourism revenue and a smaller supply of international brands and services.