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position: EnglishChannel  > Insight> Pragmatic Policies Boost Economic Resilience

Pragmatic Policies Boost Economic Resilience

Source: Science and Technology Daily | 2025-05-21 15:37:28 | Author: Gong Qian

Tourism in China saw strong growth during the Labor Day holiday from May 1 to 5, with domestic trips reaching 314 million, up 6.4 percent year on year, the Ministry of Culture and Tourism said. Tourists spent 180 billion RMB (nearly 25 billion USD), an annual 8 percent increase.

Inbound travel has emerged as a bright spot. The number of inbound tourism orders during the holiday increased by 130 percent year on year, according to a report by global travel service provider Trip.com Group.

"The Chinese government's strategic policy adjustments have played a pivotal role in this tourism boom," market intelligence provider ReportLinker said. One of the vital policies is the departure tax refund, described by ReportLinker as "a game-changer," driving the growth of inbound tourism orders.

On April 27, China announced a series of measures to improve the tax refund policy for foreign tourists to boost inbound consumption. This was part of the efforts to boost the economy. These measures include a lower threshold for tax refunds. The minimum refund point for a single overseas traveler in the same tax-refund shop on the same day has been lowered to 200 RMB (about 27 USD) from 500 RMB (about 69 USD).

The simplified refund process for foreign tourists is expected to boost spending, particularly in high-end retail and luxury goods, according to the Retail Insight Network website, a unit of analytics and consulting company GlobalData.

"This initiative reflects China's ongoing efforts to adapt its retail strategies to the evolving global economic landscape, aiming to attract more international shoppers and stimulate domestic consumption," Retail Insight Network said.

Adith Chairattananon, honorary secretary-general of the Association of Thai Travel Agents, told the Bangkok Post that the more favorable tourism policies implemented by the Chinese government, including the revised tax refund and extending visa-free transit to 240 hours, have greatly helped to attract a larger number of tourists.

He said Thailand should also adopt a similar scheme as the instant on-the-spot tax refunds would encourage tourists to spend more during their trips. This could eventually raise spendings per head.

In addition to boosting tourism consumption, China has stepped up efforts to support export-oriented companies. They include plans to ensure troubled firms get loans and turn to the domestic market amid the U.S. "reciprocal tariffs," Bloomberg reported.

The "reciprocal tariffs" have given China an even stronger impetus to unlock the country's consumer potential, the BBC said.

CNBC highlighted major Chinese tech companies' actions to help exporters redirect their goods to the domestic market through livestreaming. For example, tech giant Baidu has been working with several hundred Chinese businesses to launch domestic e-commerce channels.

Major e-commerce platforms in China are also playing a pivotal role. CNBC reported that e-commerce giant JD.com pledged 200 billion RMB (about 27 billion USD) to buy Chinese goods originally intended for export and find ways to sell them within China. Food delivery giant Meituan announced it would help exporters distribute domestically. This collaboration is creating new opportunities for export businesses to tap into the huge domestic market.

Facing a rapidly evolving and complex global trade environment, the Chinese economy has shown its strong resilience by leveraging its vast domestic market, unrivaled supply chain and effective policy adjustments.

Editor:GONG Qian

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