Overview

• China reduced the minimum spending requirement for foreign tourist tax refunds from 500 yuan to 200 yuan, effective Saturday.
• The cash rebate ceiling for foreign tourists was doubled to 20,000 yuan, alongside plans to streamline refund procedures and expand the number of eligible shops.
• Officials are encouraging the establishment of immediate rebate points in tourist-heavy areas to facilitate easier refunds for travelers.
• Inbound tourist spending reached $94.2 billion in 2024, representing only 0.5% of China's GDP, significantly lower than the 1–3% seen in other major economies.
• These measures are part of broader stimulus efforts, including subsidies for auto and appliance trade-ins and increased housing funding, to counter the economic pressures of escalating US-China tariffs.