China sees surge in sales of duty-free goods amid inbound tourism boom

Major Chinese cities have reported a surge in purchases of tax-refundable goods by foreign tourists in recent months, as new duty-free rules designed to boost tourism spending begin to pay off.

In Shanghai, sales of tax-refundable goods jumped 85 per cent year on year in the first half of 2025, with the number of “buy now, refund now” transactions surging 28-fold, according to figures released by the city’s municipal government last week.

China introduced a more generous tax-refund policy for inbound tourists in late April, lowering the minimum purchase threshold from 500 yuan (US$69) to 200 yuan. The government has also expanded the number of localities and stores where visitors can claim refunds.

Sales of tax-free goods to inbound visitors in Beijing have averaged more than 100 million yuan per month so far this year, the state-run news agency Xinhua reported on Monday.

The growing sales are also being driven by a boom in inbound tourist numbers as China aggressively expands its visa-free entry policies, with citizens of 47 countries now able to stay in the country without a visa for up to 30 days.