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China’s latest play to revitalize its post-pandemic economy is taking shape at border checkpoints and retail counters. In a significant shift to boost inbound travel and spending, Chinese authorities have expanded visa-free access and overhauled tax refund rules for foreign visitors.
The result? “China Travel” is no longer just a trend on social media. It’s emerging as a strategic tool in China’s broader effort to re-engage with global markets.
Since early 2023, Beijing has introduced a series of liberalizations to ease entry into the country. Mutual visa exemptions have been signed with 29 countries, while unilateral visa-free access has been extended to travelers from 38 nations, including key markets such as France, Germany, and Malaysia. In total, 54 countries, among them the U.S., U.K., and Canada, now benefit from a streamlined, transit visa-free policy.
“These measures are designed to reduce the friction of financial and administrative travel,” said Liu Jia, an official with China’s National Immigration Administration, speaking at the China Economic Roundtable, an all-media platform hosted by Xinhua News Agency.
While loosening visa rules often makes headlines, China’s adjustment to tax policy may yield longer-term economic dividends.
Foreign visitors can now access instant VAT refunds at designated duty-free retailers. China has also raised the cash refund cap, lowered minimum spending thresholds, and broadened the eligible product list, signaling an open-arms approach to international consumers and their wallets.
“These improvements send a clear message: China is open for business and tourism,” said Shi Zeyi, a senior official from the Ministry of Culture and Tourism.
The results are already visible. In 2024, inbound trips reached 132 million, with total tourism spending nearing $94.2 billion nearly 94% of pre-COVID levels. That influx has had cascading effects across sectors such as hospitality, retail, and cultural services, boosting China’s service trade and drawing fresh foreign direct investment.
But beyond economics, officials are framing the campaign as a tool for global diplomacy and soft power.
“First-hand experience helps counter stereotypes and builds mutual understanding,” said Liu. “An open and inclusive China is not just something to read about. It’s something the world is now welcome to see.”
The reforms also present fresh considerations for multinational tax professionals and global mobility specialists. More liberal visa arrangements may open pathways for short-term work, meetings, and business scouting trips. At the same time, optimized refund structures could increase the appeal of China as a regional hub for conferences and luxury retail.
As other economies tighten their borders or tax refund schemes, China is betting that openness and a bit of paperwork relief can drive tourism and trust.
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