China has announced plans to enhance its tax refund regime for international tourists, seeking to energize inbound spending as domestic consumption remains lackluster, especially amid the tit-for-tat trade dispute with the U.S.
The initiative, detailed in a joint statement by the commerce ministry and other governmental bodies, aims to proliferate tax refund facilities across prominent shopping districts, tourist destinations, airports, and accommodations.
In a bid to make shopping more attractive to visitors, the new policy will lower the minimum tax refund threshold per tourist per day in the same shop from 500 yuan to 200 yuan ($27.45).
Separately, projections from the World Trade Organization indicate a significant decline, approximately 77%, in Chinese exports to the United States by 2025. In contrast, China’s import activity is anticipated to rise across all other global markets.
